Shares in gaming companies are climbing across the board. As of the latest update, iDreamSky Technology Holdings Ltd (01119.HK) rose 5.88% to HK$0.27, Bilibili Inc (09626.HK) gained 4.2% to HK$146.4, Tencent Holdings Ltd (00700.HK) advanced 4.16% to HK$465.8, and XD Inc (02400.HK) increased 2.71% to HK$46.28.

On the news front, the National Press and Publication Administration recently issued video game licenses for July 2026, approving a total of 197 titles. This marks the largest single batch of approvals in the past five years. Cumulatively, 1,147 licenses have been granted so far in 2026.

Regulatory support for healthier industry development

Citi noted that the timing of the license approvals, just ahead of the summer peak season and the China International Digital Entertainment Expo (ChinaJoy), indicates ongoing regulatory support for the healthy development of the online gaming industry. The latest batch of approvals benefits various game developers and further solidifies a healthy supply pipeline for the sector.

Approval numbers hit a three-year high

Huachuang Securities pointed out that the July license approvals included 193 domestic titles, a 52% increase year-over-year and a 21% increase month-over-month. This volume represents the highest in nearly three years. Among the approved titles is Phantom Blade Zero from Lingyoufang, which the brokerage sees as further evidence that the gaming sector, as a benchmark industry for cultural exports, has entered a new normal where regulators encourage healthy growth.

Huachuang Securities added that gaming remains a segment within the broad consumer sector with fast growth, low valuations, and high cost-effectiveness. Institutional holdings are currently at historic lows, creating opportunities for earnings releases and valuation recovery.