The Chinese press and publications authority has given the green light for 105 new online games, showing its full support for the industry. This comes after proposed restrictions led to significant financial losses for investors in top game companies last week.

The National Press and Publication Administration issued a statement on its WeChat social media account Monday saying the approvals by the Game Working Committee of China Music and Digital Association were “positive signals that support the prosperity and healthy development of the online game industry.”

Tencent’s “Counter War: Future” and NetEase’s “Firefly Assault” were both given approval to be released as games.

The release of proposed regulations for limiting online gaming had a significant impact on the stock prices of video game companies such as Tencent and Netease on Friday. This led to losses of billions of dollars and contributed to a decline in Chinese stock market indices.

According to the guidelines set by the administration, online games are prohibited from providing rewards for daily log-ins or purchases. Additional rules include capping the amount of recharging allowed and giving warnings for excessive spending habits.

On Friday, Netease’s shares on the Nasdaq dropped by 16.1% and its shares on the Hong Kong exchange plummeted by 25%. Tencent’s shares also closed 12% lower. Huya Inc., a smaller company that makes online games, saw a decrease of 10.7% on the New York Stock Exchange. Collectively, these companies lost billions of dollars in market value.

The market in Hong Kong was not open on Monday due to the Christmas holiday. In Shanghai, share prices remained unchanged.

The Press and Publication Administration reported that as of 2023, there were 1,075 game versions released, with 977 being produced domestically and 98 being imported.

A “2023 China Game Industry Report” was referenced, stating that the revenue from online games in the domestic market surpassed 300 billion yuan ($42 billion) in 2023. Additionally, the report revealed that the number of players reached 668 million.

The committee responsible for overseeing the gaming industry encourages member units to use this opportunity to release superior products, advance the high-quality growth of the online gaming industry, and play a role in promoting cultural prosperity and development, ultimately contributing to the establishment of a culturally influential nation.

In recent years, China has implemented a variety of actions to address issues within the online gaming industry.

In 2021, regulators enforced restrictions on the duration of children’s video game usage to a maximum of three hours per week due to concerns about addiction. The approval process for new video games was temporarily halted for approximately eight months but resumed in April 2022 as the government eased its broader crackdown on the technology industry.

Source: wral.com