MILAN, July 13 (Class Editori) — For the second consecutive month, Chinese market regulators have issued new approvals in the release of video games, after a long hiatus. Immediate response from the Hong Kong Stock Exchange, where the stocks of the industry's largest producers are listed.
Bilibili, Kingsoft and iDreamSky Technology Holdings, whose video games are among the 67 approved, gained 4.3%, 5.3% and 4.6%, respectively. The favorable approval represented the third one of the year, following a nine-month hiatus that had investors worried, dragging down stock prices.
"The two consecutive months of approvals are likely to address market concerns about the industry’s performance," Jefferies analysts, headed by Thomas Chong, stated. Experts believe that "quality content will play a key role in the release of new games in the future".
In the previous rounds in April and June, video games from market leaders Tencent (-0.2%) and NetEase (+2.7%) were not approved. Goldman Sachs analysts had stated in a note prior to the latest approvals that "investors are monitoring the market to see if Tencent's or NetEase's games will be approved".
An update about the release date of Diablo Immortal, a game co-developed with US giant Activision Blizzard, is also expected. The game's release in China had been delayed last month due to NetEase's alleged need to improve performance and add support for multiple devices.
(Source:Class Editori)
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