China’s gaming industry is caught up in broader regulatory tightening in the tech sector. Regulators are increasingly concerned about gaming addiction in children. The approval of the first batch of games since July 2021 could indicate that difficulties in China’s gaming sector will begin to subside.
Greg Baker | AFP | beautiful pictures
Chinese regulators approved the first batch of video games for monetization since last July, ending a freeze that has plagued some of China’s biggest tech companies.
U.S. listed shares of NetEaseone of China’s biggest game companies, was up more than 4% in early trading on Monday while live-streamers Bilibili, Huya and DouYu also jumped.
In China, companies need approval from regulators to monetize games. China’s National Press and Publication Administration approved 45 games on Monday. Titles from NetEase and gaming giants Tencent However, not on the list.
Tencent and NetEase declined to comment when contacted by CNBC.
But the approval is likely to indicate a slightly more favorable view of the gaming industry from regulators after months of difficulty amid China’s tightening of regulation in the tech sector.
