Game-license approval finally resumes in China
China has resumed game-license approval, which had been suspended since July, a growth catalyst for the world's biggest gaming market that rallied gaming stocks on Tuesday.
Forty-five new game titles have been approved so far in April, developed by firms like Baidu, XD Inc, Youzu and Lilith. However, none of the approved titles are from market leaders Tencent and Netease, according to a statement published on the National Press and Publication Administration's website.
"The long-awaited license resumption has restored the gaming market along with normal and healthy development," said Huatai Securities in a research note.
It has also eased concerns and rumors that China is cracking down on the tech industry.
Shares of Shanghai-based Youzu, also known as Yoozoo, jumped 10 percent to close at 11.39 yuan (US$1.8). HK-listed XD was 2.53 percent higher at HK$24.3 (US$3.1) by 3:00 pm, while intraday reached a high of HK$29.4.
Meanwhile, the administration is continuing to regulate the gaming industry, targeting issues such as children's addiction problems.
In August, China issued a policy to limit playing time for children under the age of 18. Minors will be allowed to play games only from 8pm to 9pm on Fridays, weekends and holidays, according to a previous policy from the administration.
Among the 45 titles approved this month, the majority are casual mobile games and not so-called hardcore games that often require a lot of time, analysts said.