Shares of Tencent Holdings (TCEHY), NetEase (NTES) and other China stocks jumped Friday after a government official signaled that a freeze on approvals for new games is ending. But some gave back those gains before markets closed.
“We are accelerating the process of issuing licenses for game titles,” China government spokesman Feng Shixin said, according to media reports. Shixin appeared at a gaming industry symposium on Friday.
“We’ve finished reviewing the first batch of games,” he added. Approvals for online games progressed for the first time since March.
Big Stock Moves
Shares of Tencent, the largest gaming company in China, jumped 3.4% to 39.54 on the stock market today. Another large gaming company, NetEase, soared 3.7% to 244.43.
Among other China stocks in the internet sector, Weibo (WB), which was up 3% in morning trading, closed up 0.1% to 55.45. Huya (HUYA), which had been up 4.3%, ended the day down 3.6%, to 15.58. Momo (MOMO) closed at 23.38, up 0.2%. It was up 2% earlier in the day.
Government officials stopped issuing licenses for online games in China early this year, in the world’s largest gaming market. Media reports attributed the holdup to an overhaul of the government agencies that regulate the industry.
The new structure gives them more scrutiny over the billion-dollar market. It came as Chinese authorities warned about violent content and the addictive nature of some games.
Publication: Investor’s Business Daily| Some China Stocks Surge As Gaming License Freeze Starts to Thaw