Home LATEST NEWS HIGH TECH China grants licenses to video games, much to the delight of the...

China grants licenses to video games, much to the delight of the industry

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The sector has been under pressure for months from Beijing, which has multiplied the blows against powerful Internet companies, fined for competition and personal data issues.

Video games, which represent an important financial windfall in China, but are decried for their addictive side among young people, have not been spared by this takeover.

Beijing had frozen any new license for nine months, which had weighed on the profitability of the Chinese heavyweight Tencent.

On Tuesday, 60 new video games were licensed in China after an initial batch in April, the press and publication administration said.

Tencent and its competitor NetEase did not obtain any license, however, unlike local studios such as Perfect World or miHoYo, publisher of the popular game. Genshin Impact.

The green light from Beijing caused technology stocks to jump on Wednesday, with the hope of a patching up with this sector which has been under pressure for months.

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Strong stock market reaction

Tencent stock gained more than 6% on the Hong Kong Stock Exchange, while NetEase gained more than 5%.

The e-commerce champion Alibaba, which had been the first to suffer the punishment of the authorities, ended up up more than 10%.

In August, authorities imposed a sweeping limit of three hours of online video gaming per week for those under 18, when some could previously spend entire days there.

Regulatory uncertainties have weighed on the profitability of tech giants: Tencent reported sluggish quarterly growth last month, unseen since 2004.

Threatened by an economic slowdown, the Chinese government has however seemed to water down its wine in recent weeks.

Beijing affirmed its support for the digital economy in April and received several industry leaders in the process.

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