Tencent’s game titles gets nod of approval from Chinese regulator, shares climb more than 4.0%
Two mobile games from Tencent were approved in a list of 95 game titles.
Shares of internet company Tencent Holdings rose more than 4.0% on Friday after Chinese regulators gave the green light to allow some of the company’s games to be released, ending the 9-month long freeze the firm had faced due to regulatory tightening on China's video game industry.
On Thursday, two mobile games from Tencent were approved in a list of 95 game titles, an update from China’s State Administration of Press, Publication, Radio, Film, and Television showed. This is the first time Tencent's game titles are included in the approval list, and it had been absent from the previous three batches of approval.
A lack of new Tencent game titles released due to regulatory tightening
Tencent has been facing tough times for its video gaming business in recent months as China has been clamping down on the market, limiting the number of new online game releases.
Chinese regulators had suspended new titles in a campaign to combat gaming addiction, and the move casted uncertainty over Tencent’s main business.
Investors were unnerved by a lack of approval from Chinese regulators on the games from Tencent, causing the group to lose over 20.0% of its market value since March. The group also faced its first profit drop in at least a decade due to the regulatory hit.
But the regulatory clampdown has not stopped the tech firm from testing out new titles. Last week, it released a test version smartphone game of United States television hit series Game of Thrones, titled 'Game of Thrones: Winter is Coming'.
Tencent’s shares closed the week’s session higher by 4.1% or HK$13.60 on Friday evening, at HK$343.80.
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