The shares of Chinese game companies have risen as Beijing approves a series of new games. As CNBC reports, this comes after the list released by China’s National Press and Publication Administration on Tuesday, announcing the approval of new games.
There are no games from NetEase and Tencent in the published list. Although Tencent stocks showed horizontal progress, the stocks of several companies rose after this list.
Stocks of Bilibili, founded in 2009, saw an increase of more than 4%. On the other hand, NetEase stocks rose 3% after this decision. As mentioned above, it is worth remembering that there is no NetEase game on the list.
In China, video games cannot be released without regulatory approval. The Chinese government, which has targeted game companies with many rules it has brought, has given companies a little breath with these approvals. The current global economic recessions have caused many companies, including Tencent, to downsize.
Tencent reported a record drop in its Q1 2022 financial report. Recently, the company, which closed its broadcasting platform called WeGame, was caught in the middle of economic difficulties. The downsizing of even such a large company has scared many people.