Core Insights - Paramount has signed a deal with Microsoft-owned Activision to develop, produce, and distribute a live-action film based on the Call of Duty video game franchise [1][2] - Call of Duty has been the best-selling video game series in the U.S. for 16 consecutive years, with over 500 million copies sold globally [2] Company Developments - David Ellison, chairman and CEO of Paramount, expressed his excitement about the project, highlighting his long-standing passion for the Call of Duty franchise [2][3] - The deal follows Paramount's recent merger with Skydance, which has led to a series of significant announcements, including a partnership with The Duffer Brothers for future projects [3] Financial Commitments - Paramount has also acquired the U.S. rights to UFC in a $7.7 billion, 7-year deal that will commence in 2026 [4] - Ellison indicated that the company aims to invest in "high-quality storytelling and cutting-edge technology" to shape the future of entertainment [4]

Group 1 - The 22nd ChinaJoy exhibition showcased the growth of the digital entertainment industry in China, evolving from a gaming-focused event to a comprehensive platform that includes anime, online literature, esports, and smart entertainment hardware [1] - Major companies like Tencent, NetEase, Blizzard, and Perfect World highlighted the increasing popularity of esports, with long queues at their gaming demo areas, indicating strong consumer interest [1] - Perfect World announced the establishment of the "Perfect Esports Partner Alliance" with partners including NVIDIA, Intel, AGON, and Samsung, aiming to expand the esports ecosystem [1] Group 2 - The esports industry in China is experiencing significant growth, with a reported revenue of 12.761 billion yuan in the first half of the year, marking a 6.10% year-on-year increase, and a user base of nearly 493 million, up 0.59% [2] - Intel's market manager emphasized the strong demand for high-performance gaming hardware in China, with over 50% of sales for their high-end gaming laptops coming from the Chinese market [2] - The esports sector is entering a collaborative innovation era, where hardware, software, and ecosystem development must work together to enhance the industry [2] Group 3 - Industry leaders are focusing on improving hardware performance to meet the endless demands of esports enthusiasts, with Intel addressing common issues like noise, heat, and battery life through their XPU architecture [3] - The rise of esports is reshaping industry perceptions and creating new opportunities for display technology development, as noted by executives from AOC Technology and Samsung [3] - Future esports events are expected to integrate more immersive experiences, similar to traditional sports, enhancing viewer engagement and interaction [4] Group 4 - The esports industry is transitioning from a niche hobby to a mainstream consumer scene, with increasing recognition of its competitive and entertainment value [4] - The Chinese esports industry is progressing towards standardization, mainstream acceptance, and internationalization, with opportunities to leverage favorable policies and public interest [5]

Core Insights - The mobile gaming industry continues to show strong growth, with several titles achieving significant revenue increases and market positions in May 2025. Group 1: Revenue Growth and Rankings - Point Interactive's new 4X strategy game "Kingshot" achieved a revenue increase of 100% month-over-month, reaching a total of $75 million in revenue within three months of launch, ranking 5th in overseas mobile game revenue [3] - "恋与深空" (Love and Deep Space) saw a 24% increase in overseas revenue in May, reaching the 10th position in the revenue rankings, with total global revenue hitting $650 million by June 8, 2025 [3] - "Lands of Jail," a 4X strategy game from Yishijie, experienced a 68% revenue increase in May, entering the overseas mobile game revenue rankings at 26th place [4] - miHoYo's "Genshin Impact" saw a 57% increase in overseas revenue in May, ranking 2nd in the revenue growth list [5] - Tencent's tactical shooter "Delta Force" experienced a 108% revenue increase in May, nearing $30 million in global revenue [7] Group 2: Download Rankings - Hungry Studio's puzzle game "Block Blast!" maintained its position as the top downloaded game in both overseas and global mobile game download rankings [9] - Tencent's "Delta Force" saw a 21% increase in overseas downloads, ranking 2nd in the download list for May [11] - "Mobile Legends: Bang Bang" by Moutong Technology experienced a 50% increase in downloads due to a collaboration with the popular anime "Naruto," ranking 3rd in the download list [11] Group 3: New Game Releases and Features - "Flambé: Merge & Cook," developed by Lemon Microfun, achieved revenue growth of 306% and 286% in April and May respectively, entering the growth rankings at 17th place [7] - "Tasty Travels: Merge Game," launched by Point Interactive, saw a 74% revenue increase in May, marking a 66-fold increase compared to May 2024 [8]

Core Viewpoint - The Federal Trade Commission (FTC) officially withdrew its antitrust lawsuit against Microsoft's acquisition of Activision Blizzard, marking the end of regulatory disputes surrounding what is described as the "largest merger in gaming history" [1][2][4]. Regulatory Developments - On May 22, the FTC announced the withdrawal of its lawsuit, stating that continuing the litigation was not in the public interest after the Ninth Circuit Court upheld a lower court's decision to deny a preliminary injunction against the merger [2][3]. - The FTC's efforts to block the merger began in December 2022, citing concerns that the acquisition could suppress competition [2][4]. Acquisition Details - Microsoft announced its plan to acquire Activision Blizzard for approximately $69 billion in January 2022, which faced significant regulatory scrutiny in multiple countries before being completed in October 2023 [1][6]. - The total transaction value was reported to be $75.4 billion, with Microsoft utilizing over half of its cash reserves, which amounted to $111.26 billion as of June 30, 2023, for the acquisition [4][5]. Market Impact - Following the acquisition, Microsoft's Xbox content and services revenue surged by 50%, with Activision Blizzard contributing 44% to this growth [5]. - The merger is expected to enhance Microsoft's competitive position across various gaming sectors, including console, PC, and mobile gaming, while also expanding its player base significantly [4][5]. Challenges and Responses - The acquisition faced challenges from the UK's Competition and Markets Authority (CMA), which expressed concerns about Microsoft's potential dominance in the cloud gaming market [7][8]. - Microsoft made concessions by selling cloud gaming rights to Ubisoft, which helped alleviate some regulatory concerns from the CMA [8]. Future Considerations - With regulatory hurdles cleared, the focus now shifts to how Microsoft will effectively integrate Activision Blizzard into its gaming operations [9].

Investment Rating - The industry rating is "Recommended" [5] Core Insights & Investment Recommendations - Trade uncertainties have resurfaced, with President Trump threatening a 50% tariff on EU imports, which may disrupt market risk appetite temporarily. However, China's core assets still hold low-positioning value due to domestic demand resilience, industrial chain upgrades, and policy support [2][24] - OpenAI's acquisition of the AI hardware startup io for $6.5 billion marks its entry into the hardware sector, indicating a strategic shift from a "pure software ecosystem" to an "end-side closed-loop" strategy. This move is expected to lower the technical usage threshold and accelerate the commercialization of AI applications in consumer scenarios [2][43] - Investment opportunities include: 1) Hong Kong internet leaders benefiting from consumption promotion and employment stability; 2) The gaming industry, which is expected to see growth due to policy incentives and technological empowerment; 3) The film and cultural tourism industry, which will benefit from consumption policies promoting cinema recovery [3][25] Industry Data - The top three films at the box office are "Dumpling Queen" with a revenue of 31.83 million yuan (21.10% market share), "Hunting Gold: Game" with 29.16 million yuan (19.40%), and "Life Opens the Door" with 25.13 million yuan (16.70%) [4][58]

Investment Rating - The industry rating is "Recommended" [5] Core Insights & Investment Recommendations - Trade uncertainties have resurfaced, with President Trump threatening a 50% tariff on EU imports, which may disrupt market risk appetite temporarily. However, China's core assets still hold low-positioning value due to domestic demand resilience, industrial chain upgrades, and policy support [2][25] - OpenAI's acquisition of the AI hardware startup io for $6.5 billion marks its entry into the hardware sector, indicating a strategic shift from a "pure software ecosystem" to an "end-side closed-loop" strategy. This move is expected to lower the technical usage threshold and accelerate the commercialization of AI applications in consumer scenarios [2][25] - Investment opportunities include: 1) Hong Kong internet leaders benefiting from consumption promotion and employment stability; 2) The gaming industry, which is expected to see growth due to policy incentives and technological empowerment; 3) The film and cultural tourism industry, which will benefit from consumption policies promoting cinema recovery [3][26] Industry Data - The top three films at the box office are "Dumpling Queen" with 31.83 million yuan (21.10% market share), "Hunting Gold: Game" with 29.16 million yuan (19.40% market share), and "Life Opens the Door" with 25.13 million yuan (16.70% market share) [4][63]

Group 1: Economic Indicators - In May, the Markit Manufacturing PMI in the US reached 52.3, marking a three-month high and indicating expansion, with new orders growing at the fastest pace in over a year [1] - The Markit Services PMI also showed improvement, with a preliminary value of 52.3, indicating a two-month high and successful cost pass-through to consumers [1][2] - Despite the positive PMI readings, US manufacturing and service export orders continue to decline, and consumer confidence is decreasing [2] Group 2: Trade Performance - Shenzhen's import and export value exceeded 400 billion yuan in April, with a year-on-year growth of 3.8%, marking the first consecutive month of positive growth this year [3] - The import value increased by 15.7%, while exports decreased by 2.9%, indicating a stable demand for imported goods [3] - The trade relationship with the US has significantly declined due to tariff policies, but trade with other major countries remains strong, reflecting a diversified market [4] Group 3: Automotive Industry - BYD's electric vehicle sales in Europe surpassed Tesla for the first time, with a 169% year-on-year increase in April, while Tesla's sales dropped by 49% [5] - The overall European electric vehicle market saw a 28% increase in sales, with other brands like Volkswagen also performing well [5][6] - BYD's strategy of introducing models that cater to European consumers has helped it gain market share despite facing additional tariffs [5][6] Group 4: Corporate Developments - Alibaba Pictures plans to rebrand as Damai Entertainment, reflecting a shift in focus towards the live entertainment market, which has shown robust growth [9][10] - The rebranding aims to enhance market recognition and align with the company's evolving business strategy [9] - The live performance market remains strong, contrasting with the challenges faced by the film industry [10] Group 5: Mergers and Acquisitions - The US Federal Trade Commission has withdrawn its lawsuit against Microsoft's acquisition of Activision Blizzard, allowing the $69 billion deal to proceed [11] - This acquisition is expected to enhance Microsoft's gaming content ecosystem, although integration risks remain [11][12] - The deal marks a significant milestone in the gaming industry, positioning Microsoft as the third-largest gaming company globally [11] Group 6: Investment Trends - Qatar Holding has acquired a 10% stake in Huaxia Fund, reflecting growing interest from Middle Eastern capital in China's asset management sector [13][14] - This investment aligns with the trend of increased foreign investment in China's financial markets, driven by the country's economic resilience [14]

Regulatory Actions - The China Securities Regulatory Commission (CSRC) issued three penalties, including a fine of 5 million yuan against the former chairman of Yan'an Bikan for financial fraud [21] - The Financial Regulatory Bureau is drafting new regulations to ensure transparency in asset management products of banks and insurance institutions [28] Market Monitoring - The Shanghai Stock Exchange is closely monitoring stocks with delisting risk and those with significant abnormal fluctuations, including *ST Jinguang and Zhongyida [13][14] - The Shenzhen Stock Exchange is also focusing on stocks with abnormal price movements, continuing to monitor *ST Yushun and others [14] Corporate Debt and Financial Health - China Construction Bank announced that the bondholder meeting for "23 Karamay MTN001" was not valid due to insufficient voting rights [5] - CIFI Group plans to offer a debt restructuring proposal with four options for bondholders, reflecting the company's current operational challenges [6] - Yixing Transportation Energy Group reported new borrowings exceeding 20% of its net assets, indicating financial strain [7] - Pan Hai Holdings announced a delay in the repayment of a $146.045 million private placement note until November 2025 [8] Industry Developments - The coal mining sector is experiencing increased production, with auction prices for coal significantly reduced, indicating supply pressure [33] - The Ministry of Public Security and other departments released a management method for national online identity authentication services, effective July 15, 2025 [34] - The State Council is pushing for a shift in food safety governance towards preventive measures and stricter regulations [35] Real Estate Market - The top 100 real estate companies in China have seen a 13% decrease in total land reserve value compared to the previous year, with 96% of these companies reporting a decline [37]

Core Viewpoint - The Federal Trade Commission (FTC) has officially withdrawn its antitrust lawsuit against Microsoft's $69 billion acquisition of Activision Blizzard, marking a significant victory for both American gamers and political rationality [1][2]. Group 1: Acquisition Details - The acquisition, which began in January 2022, has positioned Microsoft's gaming business as the third largest globally, integrating over 30 top IPs from Activision Blizzard [2]. - Following the acquisition, the Xbox Game Pass library has expanded to over 5,000 games, with subscription users increasing by 60% to 40 million, generating annual subscription revenue exceeding $6 billion [2]. Group 2: Regulatory Challenges - The FTC initially opposed the acquisition due to concerns over monopoly risks, particularly fearing a decline of 3 million units in annual sales for Sony's PS console if the Call of Duty series was removed from the platform [2]. - Microsoft has committed to keeping the Call of Duty series available on the PS platform for ten years and has agreed to open cloud gaming licenses to third parties, which ultimately persuaded the court to allow the acquisition [2]. Group 3: Global Regulatory Agreements - Major global regulatory bodies have reached settlement conditions, with the EU requiring open cloud gaming transmission channels and the UK establishing an independent regulatory committee, leading Microsoft to divest some cloud gaming rights [2]. Group 4: Integration Challenges - Despite the legal hurdles being cleared, the integration of Activision Blizzard presents ongoing challenges, including declining revenue and cultural conflicts within the studios leading to talent loss [2][3]. - The FTC retains the right to initiate an administrative trial in July, theoretically allowing for the potential breakup of the merged entity, indicating that the true test of integration is just beginning [3].

Core Viewpoint - The U.S. Court of Appeals has rejected the Federal Trade Commission's challenge against Microsoft's acquisition of Activision Blizzard [1] Group 1 - The court's decision is a significant legal victory for Microsoft in its efforts to finalize the acquisition [1] - The ruling may pave the way for the completion of the $68.7 billion deal, which has faced regulatory scrutiny [1] - This outcome reflects a broader trend of courts siding with tech companies in merger cases [1]