Tencent's DnF Mobile Leads Market Revival with 2.9% Stock Surge After China's Gaming Regulation Reversal
China's gaming regulator, the National Press and Publication Administration (NPPA), unexpectedly approved a new batch of 32 foreign video games, easing concerns in the market after the recent scrapping of a controversial gaming regulation.
Notable among the approvals is the hit title Dungeon & Fighter (DnF) Mobile, operated in China by Tencent Holdings ADR (OTC TCEHY), which saw a 2.9% increase in its stock price in Hong Kong following the news, South China Morning Post reported. Meanwhile, the stock experienced a 0.95% increase in the past 24 hours.
See Also: Tencent Responds To China's Crackdown On Video Gaming, Doesn't Anticipate Changes
The approval is seen as a positive surprise, especially for Tencent's DnF Mobile, as it was initially hindered by Beijing's tightened controls on game licensing and content in 2020.
Other titles approved include two Nintendo ADR's (OTC: NTDOY) Switch games, Kirby Star Allies and Taiko no Tatsujin, both published by Tencent in China, as well as Bleach: Soul Resonance by ByteDance-owned game studio Nuverse and Octopath Traveler: Champions of the Continent by NetEase.
This move is part of China's effort to restore confidence in the gaming industry, which faced a setback due to draft regulations aimed at curbing "excessive" gaming.
The proposed rules triggered a market downturn, prompting concerns of an extended crackdown.
The authorities took steps to contain the damage, justifying the proposal as an effort for the "healthy development" of the gaming sector.
The recent approvals follow NPPA's green light to 115 new domestic video games last week, signaling a positive turn for the industry after a period of uncertainty.
Despite a slowdown in international expansion, China's video game sales reached 303 billion yuan (US$42.7 billion) in 2023, marking the highest annual total since 2003.
Photo: Sergei Elagin on Shutterstock.
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