New Tencent games approved for publication, shares jump 4%
Chinese internet and games publishing giant Tencent has won approval for the publication of new mobile games for the first time since March 2018, prompting a jump of over 4% in its share price on 25 January
Tencent is the world’s largest video games publisher by revenue, with a range of wildly popular video games in its arsenal including League of Legends and Arena of Valor, and video games are the firm’s largest source of revenue.
The Chinese government introduced stricter measures to its video game approvals process in March 2018, and has only recently resumed approving new games for the Chinese market.
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Tencent and fellow tech giant NetEase had not been included in the government’s first three waves, with both firms being included for the fourth list that has yielded 95 additional approvals.
According to CNN Business, Tencent shares rose 4.1% in Hong Kong on 25 January, with investor confidence buoyed by the world’s largest games company now able to generate revenues from new games.
The Chinese government is currently working through a backlog of over 7,000 video games awaiting approval, CNN Business said, with approval for Tencent’s mobile version of PlayerUnknown’s Battlegrounds being one of the company’s most hotly-anticipated titles in the pipeline.