The Chinese gaming regulator has granted publishing licenses for 45 games. From such companies as Baidu along with The XD Corporation’s (2400. HK) “Party Star” ended an eight-month suspension that was a blow to several of China’s biggest tech companies. It is reported that the Chinese authority has issued fresh video game licenses. For the very first time at the beginning of July 2021. Check Gaming News: China approved gaming licenses for 45 video games.
But none of the approved games were made by top Chinese companies like Tencent. The National Press and Public Administration released the list on its website. Reuters said the fact that China had granted the license for XD “Party Star” earlier in the day.
Whose games were licensed
Other companies that received licenses were iDreamSky (1119. HK) 37Games (002555. SZ) which is an affiliate that is part of G-bits Network Technology Xiamen (603444. SS), Shenzhen Zqgame (300052. SZ), and Yoozoo Games (002174. SZ), the list was displayed. U.S.-listed the shares of Chinese gaming companies NetEase Inc. And Bilibili Inc gained 8.6% and 8.6 percent, during the premarket trading.
Chinese regulators stopped approving licenses for game monetization in July of last year. Which had a major impact on industry giants Tencent Holdings (0700. HK) as well as NetEase and forced hundreds of companies in the field out of the market. The pause was triggered by the decision of China on August 1st. To introduce new limits on gaming times for youngsters under 18.
A stern social intervention it claimed was necessary to stop the growing dependence on what it called “spiritual opium”. The suspension was about the same length as a previous suspension in the year 2018. When China had stopped approving the creation of new games for 9 months. In the context of an overhaul of the bodies which oversee the sector.
The crackdown of China on online games
As per the Chinese National Press and Publication Administration (NPPA). 45 titles were approved by companies like Seasun Entertainment, Lilith Games, and XD on the list. The titles were all approved on the 8th of April. China hasn’t been able to approve video game licenses for nine months.
On July 20, 2021, NPPA authorized a record number of titles and then was unable to approve new games afterward. The Chinese government did not provide any reason on why it had made the decision. And even did not announce an official acknowledgment.
The most recent approval signified the end of the nine-month suspension for game approval. In the year 2018, Chinese authorities have also stopped approving the release of new games with videos over nine months. Reuters reported it was the decision was part of a revamps of the oversight bodies that regulate the gaming industry.