Write what you are looking for and press enter to begin your search!
Asian Developers Stock Skyrockets After China Reportedly Begins Game Approval Process
Getting games approved for officially being sold in China is brutal. Only a handful of games get approved each time, and they only happen once in a while.
That’s probably the reason why the stocks for Asian game developers began to increase in value after the 21st Century Business Herald (via Bloomberg) reported that the Chinese government will be starting another online game approval process. However, no other details or information were provided as to what games were being considered.
According to the same report, Tencent Holdings Ltd. stocks is as much as 3.5% higher, with NetEase Inc. adding 6.8%. The Hang Seng Tech Index gained 1.9%, which was the highest close for the company in three weeks.
Meanwhile, Tokyo Nexon Co. surged 6.3%, while Koei Tecmo Holdings Co. added 3.9%. South Koreaâ€™s NCSoft Corp. gained as much as 7.9%, while NHN Corp. increased as much as 9.3% to its highest since March 2014.
Jackson Wong, an asset management director at Amber Hill Capital Ltd said:
â€œIf game approvals resume, it will be a real boost to developersâ€™ revenue. Investorsâ€™ sentiment over the technology sector further improves due to this news. It shows that the peak of the overall regulation crackdown is behind us.â€
Why have their stocks increased in value so much? Game approvals have recently slowed down in China because they are beginning to enforce stricter rules, especially for children. These include moves to fight against gaming addiction and limit the amount of time its youth can spend on the games to only one hour per day.