China approves 105 online games amid market turmoil triggered by proposed curbs

In response to the significant losses incurred by investors in major game makers due to proposed curbs, China's press and publications authority has approved 105 new online games. The National Press and Publication Administration, in a statement on its WeChat social media account, expressed full support for the industry, calling the approvals "positive signals that support the prosperity and healthy development of the online game industry."

Notable games, including Tencent's "Counter War: Future" and NetEase's "Firefly Assault," were among those approved. The move follows the recent plunge in share prices of video game makers like Tencent and NetEase after draft guidelines for curbs on online gaming were introduced last week.

The guidelines aimed to restrict online games from offering incentives for daily log-ins or purchases, limiting user recharges, and issuing warnings for "irrational consumption behavior." The proposed measures led to substantial losses, with NetEase's Nasdaq-traded shares falling 16.1 per cent, Hong Kong-traded shares sinking 25 per cent, and Tencent closing 12 per cent lower. Overall, companies in the sector experienced losses totaling tens of billions of dollars in market value.

The Press and Publication Administration emphasized that the 105 approved games are a positive step to support the industry's prosperity and healthy development. In 2023, 1,075 game version numbers were issued, with 977 being domestically produced and 98 imported.

Citing the "2023 China Game Industry Report," the administration highlighted that the sales revenue for the domestic online games market exceeded 300 billion yuan ($42 billion) in 2023, with 668 million people playing the games. The Game Working Committee encouraged member units to capitalize on the opportunity, launching more high-quality products and contributing to the cultural prosperity and development of China. The committee's move aims to foster a culturally powerful country through the promotion of high-quality development in the online game industry.

China has implemented various measures against the online games sector in recent years, including restrictions on the amount of time children can spend on games and a temporary suspension of new video game approvals.

(With inputs from Associated Press.)