China approves new online games as crackdown eases

Chinese regulators have approved new online games for the first time in nine months, at the first signs that the government is easing the damage to a sector that has developed in the past.

China’s major technology companies, including gaming giant Tencent, have been hit hard Regulators Examination in the last two years while the Communist Party sought to change the private sector, a move he saw Billions have erased the value of their collective market.

The wealthy entrepreneurs and leading companies in China were targeted as part of a policy known as “common prosperity,” which ostensibly aims to expand opportunities and living conditions to the country’s middle class. Apart from games, other focused industries included fintech, education and entertainment.

Authorities withheld approvals for new games in July last year over fears the country’s children were addicted to online titles that undermined Communist Party values.

A month later, Chinese children were banned from playing video games for more than three hours a week, hurting providers like NetEase and Tencent even further and slowing revenue growth. Also in August, the state media momentarily imposed the games as a form of “spiritual opium.”

The restrictions limited the aspirations of foreign gaming companies, including Roblox, that sought to do so Break into The Chinese market of 720 million gamers last year with its platform, which is popular with young people.

China’s National Press and Publishing Administration on Monday released a list of 45 games it said were approved last Friday. No Tencent games were on the list but one called Ginger de Tozi From Baidu, the Chinese search giant, was included.

Game approvals come when China’s security regulators issued a statement saying they would “support the healthy development of [financial] Market “in a move designed to reassure Investors were startled By the impact of the Omicron outbreak in the country.

The report led to pre-market gains for Chinese gaming stocks traded in the U.S. on Monday. Nasdaq-traded Bilibili shares rose more than 8% ahead of the market, while NetEase soared nearly 8%.

The National Press and Publications Administration, which is responsible for licensing video games in China, recently approved video games on July 22 last year. There was a similar nine-month break in approvals in 2018.

While Tencent said reliance on young people was limited, its executives said revenue growth was hurt by A process of obedience With China’s game orders and restricting minors’ access to its titles.

The company had Have tried in the past to get ahead of the regulators inRestrictions on the length of time minors can play in its online games should be tightened and by deploying face recognition technology to prevent young people from playing too long.

Tencent said this year it expects more regulation in the future, but predicted that the pace of new rules introduced in the past two years will begin to slow.

China approves new online games as crackdown eases Source link China approves new online games as crackdown eases

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