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China Approves 105 Video Games, but Stocks Fail to Rebound Despite Christmas Hopes

In a positive move for the gaming industry, China has approved 105 video games for sale in the country in December, marking the highest number of approvals since July 2022.

This comes as a welcome signal after the recent draft regulations aimed at curbing spending on online games caused turmoil in the market.

The National Press and Publication Administration (NPPA) released the latest batch of approvals on Monday, which included 98 imported titles in addition to the domestic ones. This is the first time since July 2022 that Beijing has approved over 100 titles in a single month, with 135 titles making the cut back then.

The Game Publishing Committee of the China Audio-Video and Digital Publishing Association (CADPA), a semi-official trade body, expressed its support for the development of online games in an article published on Monday. They stated that the increased number of approvals "strongly demonstrates authorities' clearly supportive stance."

Among the newly approved games are Tencent Holdings' Assault Fire: Future, as well as Lost Light and Sifangyuzhishi from NetEase.

However, despite the positive news of game approvals, the stock market did not experience the expected rebound. Last week, the draft regulation aimed at curbing spending on online games sent gaming stocks plummeting. This downward trend continued on the mainland, while the Hong Kong bourse remained closed on Monday.

The suggested spending curbs have raised concerns among investors and industry players, leading to a lack of confidence in the market. The impact on gaming stocks reflects the uncertainty surrounding the future of the industry in China.

While the approval of 105 video games is a positive step, it remains to be seen how the market will respond in the coming weeks. The gaming industry in China, which is the world's largest market, has been subject to increasing regulatory scrutiny in recent years. The authorities have been implementing measures to address concerns over excessive spending and the impact of gaming on young people.

As the year comes to a close, the gaming industry in China is navigating through a challenging landscape. The approval of a significant number of games provides some hope for the industry's growth, but the impact of the suggested spending curbs and regulatory changes will continue to shape its future.

  • China approves 105 video games for sale in December, the highest number since July 2022.

  • The move signals authorities' support for the development of online games.

  • Despite the approvals, gaming stocks fail to rebound due to concerns over suggested spending curbs.

Source: SCMP

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