We use essential cookies and third-party cookies for content.

Volkswacht Bodensee - China approves 60 new games, sparking hopes tech crackdown is ending

Volkswacht Bodensee
×
NYSE - LSE
BCC 0.76% 76.02 $
RBGPF 0% 72.77 $
CMSD 0.36% 19.69 $
NGG -0.01% 81.76 $
RIO 2.36% 85.74 $
RYCEF 1.96% 16.8 $
JRI 0.28% 10.88 $
CMSC -0.78% 19.45 $
BCE -0.8% 20.09 $
RELX -3.05% 38.99 $
GSK -0.31% 50.94 $
VOD 0.32% 15.75 $
BTI -0.45% 59.83 $
AZN -1.16% 170.08 $
BP -3.27% 48.93 $
China approves 60 new games, sparking hopes tech crackdown is ending
China approves 60 new games, sparking hopes tech crackdown is ending / Photo: © AFP/File

China approves 60 new games, sparking hopes tech crackdown is ending

BOULEVARD 08.06.2022

China has approved the release of dozens of new video games, boosting the shares of some of its biggest tech firms Wednesday on hopes that a long-running and painful crackdown on the sector is easing.

Text size:

The announcement follows a report in The Wall Street Journal on Monday that said regulators were wrapping up their investigation into ride-hailing giant Didi and will allow it to register new users.

Officials in China -- the world's biggest gaming market -- rolled out a series of restrictions last year as part of a sweeping government campaign to rein in huge tech firms.

They capped the amount of gaming time for children with the stated aim of fighting addiction and froze approvals for new games for nine months, hammering the bottom lines of many companies including sector titan Tencent.

China's National Press and Publication Administration said Tuesday it had approved 60 new games, following the year's first batch of approvals in April.

Titles from Tencent or rival NetEase were not among the latest approvals, but they did include games from Perfect World and miHoYo -- developer of the international hit "Genshin Impact".

"We are delighted to see established studios such as Perfect World, Shengqu Games, MiHoYo, and Changyou obtained approval titles this time, which we believe could indicate higher possibilities for Tencent's and NetEase's titles to be approved in coming batches," said Citi analysts in a note.

"The approval announcement will also send a positive signal of policy support to the overall China Internet sector."

Chinese tech stocks surged in Hong Kong on the news, building on the positive sentiment among investors and analysts after the report on Didi earlier in the week.

At the break in Hong Kong, Tencent was up 4.7 percent while NetEase climbed 2.9 percent

The gaming news also boosted other major tech stocks -- Hong Kong market heavyweight Alibaba was up more than eight percent and JD.com piling on more than four percent.

During the clampdown, hundreds of Chinese game makers pledged to scrub "politically harmful" content from their products and enforce curbs on underage players to comply with government demands.

China's economy, the world's second-largest, has been hammered in recent months by a series of major Covid lockdowns, and the government has rolled out a series of measures to resuscitate it.

-- Bloomberg News contributed to this story --

M.Odermatt--BTB

Featured

Judges set to rule on Australian mushroom killer's appeal

Judges set to rule on Australian mushroom killer's appeal
Syria reopens Jordan border crossing after mending ties

Syria reopens Jordan border crossing after mending ties
US to grant Flavio Bolsonaro visa as he flees Brazil after election loss

US to grant Flavio Bolsonaro visa as he flees Brazil after election loss
Meta, Snap head to trial in another case about social media's harms

Meta, Snap head to trial in another case about social media's harms