Core Viewpoint - The gaming sector has experienced a significant surge in stock prices this year, with various companies achieving remarkable growth, indicating a potential new phase of high-speed growth in the Chinese gaming industry [3][10]. Group 1: Stock Performance - ST Huatuo (002602) has seen a year-to-date increase of nearly 303%, becoming a leader in the A-share gaming sector with a total market capitalization of 153.8 billion yuan [1]. - Tencent (0700.HK) and NetEase (9999.HK) recorded stock price increases of over 60% and 70% respectively, while Giant Network (002558) surged over 260% [3]. - Other notable performers include G-bits (603444) with a rise of over 166%, Perfect World (002624) with an increase of over 88%, and 37 Interactive Entertainment with a growth of over 46% [6]. Group 2: Reasons for Stock Surge - The stock price increases are attributed to multiple factors, including high certainty in performance growth, improved internal control capabilities, and expectations for future delisting [3][6]. - The gaming industry is shifting from imitation to innovation, focusing on high-quality game development and international expansion, which enhances the industry's outlook [3][10]. - The release of new products exceeding expectations and stable performance from existing products have contributed to significant revenue and profit growth [7][11]. Group 3: Financial Performance - Century Huatuo reported a revenue of 17.2 billion yuan for the first half of the year, a year-on-year increase of 85.5%, with a net profit of 2.656 billion yuan, up 129.33% [7]. - G-bits achieved a revenue of 2.518 billion yuan, a growth of 28.49%, with a net profit of 645 million yuan, up 24.5% [7]. - Giant Network's revenue was approximately 1.662 billion yuan, reflecting a growth of 16.47%, while net profit was about 777 million yuan, up 8.27% [7]. Group 4: Policy and Market Dynamics - The issuance of game licenses has been a key driver for the gaming sector, with a significant number of licenses granted this year, indicating a favorable regulatory environment [8][10]. - The total number of game licenses issued in 2025 has reached 1,275, with 1,195 for domestic games and 80 for imported games [8]. - The Chinese gaming market's actual sales revenue grew by 14.08% year-on-year in the first half of the year, marking a historical high [10]. Group 5: Future Outlook - The gaming industry is expected to continue its upward trajectory, supported by policy incentives and technological advancements, particularly in AI and international market expansion [11][14]. - The focus on maintaining IP relevance and leveraging technology for game development is seen as crucial for sustaining growth [11][15].

Group 1 - The Tokyo Game Show 2025 opened on September 25 in Chiba, Japan, attracting significant attention and long queues for popular games [1] - Chinese games have gained notable popularity overseas, with titles like "Black Myth: Wukong" winning prestigious awards and Tencent's "Delta Force" mobile game registering over 10 million users within four days of its global launch [10][11] - The gaming industry is witnessing new trends in overseas expansion, with a surge in the popularity of "mini-games" in the SLG (Strategy and Simulation Games) sector [12] Group 2 - "Whiteout Survival," a mini-game, achieved over $3.3 billion in cumulative revenue within two years of its overseas launch, showcasing a new trend in the SLG market [13][15] - The game has a retention rate of 42% and a monthly retention rate of 8%, significantly higher than the average for SLG games [15] - The success of "Whiteout Survival" is attributed to its innovative gameplay that combines light and traditional SLG elements, appealing to a broader audience [20][25] Group 3 - The female-oriented game "Love and Deep Space" achieved significant success, generating nearly 6 billion RMB in revenue globally, with 64% coming from the Chinese market [38] - Despite its success, the game has seen a 73% decline in revenue in the 34th week of 2025 compared to the previous week, indicating potential issues with gameplay engagement [42] - The decline in interest may be due to a lack of updates and engaging content, as well as competition from other entertainment forms like K-pop [44][48] Group 4 - The overseas revenue of Chinese self-developed games reached $18.557 billion in 2024, accounting for nearly 40% of the domestic market's actual sales revenue [55] - Major players like Tencent, NetEase, and DianDian Interactive are leading the market, with Tencent focusing on localization and industrialization through numerous investments [56][57] - The gaming industry is experiencing a significant increase in the number of Chinese companies in the global market, with 32 Chinese publishers making it to the top 100 global mobile game publishers list [66][67]

Core Insights - The 2025 Tokyo Game Show has seen significant attendance and interest in both domestic and international games, highlighting the growing popularity of Chinese games abroad [1][2][4] - Chinese games have made notable achievements in international markets, with several titles receiving awards and achieving high user engagement [4][20] - The gaming industry is experiencing a shift towards "mini-games" and innovative marketing strategies, which are proving successful in retaining users and generating revenue [5][10][24] Group 1: Event Highlights - The Tokyo Game Show 2025 opened on September 25, attracting large crowds and long queues for popular titles like "Persona 3 Reload" and "Nintendo Switch 2" [1] - Domestic Chinese games also drew significant attention, with players struggling to secure demo tickets for titles like "Arknights: End of the World" [2] Group 2: Chinese Games' International Success - "Whiteout Survival" has achieved over $3.3 billion in revenue within two years of its overseas launch, showcasing the potential of Chinese strategy games in international markets [5] - The game has a retention rate of 42% and a monthly retention rate of 8%, significantly higher than the average for similar games [5] - "Kingshot," another SLG game, generated $75 million in revenue within four months of its launch, indicating a trend of successful mini-games in the market [5][6] Group 3: Marketing and User Engagement - The success of "Whiteout Survival" is attributed to its innovative gameplay that combines light and heavy SLG elements, enhancing user retention [6][8] - The game has successfully attracted a diverse player base, with over 20% of its users being female, breaking traditional gender norms in the SLG genre [8] - Marketing strategies have evolved, with games utilizing platforms like TikTok and YouTube for targeted advertising and local cultural integration [10] Group 4: Performance of Otome Games - "Love and Deep Space" has set a record for Chinese otome games, generating nearly 6 billion RMB globally, with 64% of revenue from the Chinese market [11][13] - Despite its success, the game has faced a decline in revenue, with a 73% drop in the week following its peak [14][16] - The game's lack of engaging content and updates has led to player dissatisfaction, impacting its overall performance [16] Group 5: Industry Growth and Future Prospects - In 2024, China's game export revenue reached $18.56 billion, accounting for nearly 40% of the domestic market, reflecting significant growth over the past decade [20] - Major companies like Tencent and NetEase are leading the charge in overseas markets, focusing on localization and strategic investments [20][21] - The gaming industry is witnessing a diversification of successful titles, with both "mini-games" and high-quality productions finding their place in the global market [27][28]

Core Viewpoint - The gaming sector is experiencing a notable recovery, with significant capital inflow and a supportive regulatory environment for both domestic and imported games [1] Group 1: Market Performance - The gaming ETF (159869) has seen a near 1% increase after a slight fluctuation in early trading on September 29, with a total net capital inflow of 1.672 billion yuan over the past 10 trading days [1] - The product scale of the gaming ETF has surpassed 10 billion yuan, reaching a new high since its inception, indicating strong investor interest [1] Group 2: Regulatory Environment - From January to September 2025, the National Press and Publication Administration has issued a total of 1,275 game licenses, maintaining a high volume of domestic licenses and a consistent approval rhythm for imported licenses [1] - In August alone, 166 game licenses were issued, marking the highest monthly issuance since the resumption of licenses in April 2022 [1] - The government has explicitly stated its support for the overseas expansion of the gaming industry, aiming to build a complete industrial chain from IP creation to production, distribution, and overseas operations [1] Group 3: Industry Outlook - According to Kaiyuan Securities, the gaming industry is still in a high prosperity cycle driven by supply-demand resonance, with the upcoming quarterly reports likely to further validate this high prosperity [1] - The current valuation of the gaming sector remains attractive, and it is recommended to increase allocations in gaming after recent adjustments [1] - The gaming sector is catalyzed by multiple factors including AI, content, and changes in commercialization models, with the gaming ETF (159869) tracking the performance of A-share listed companies in the animation and gaming industry [1]

Core Viewpoint - The article discusses the evolution of China's gaming industry policies, highlighting the government's support and regulatory measures aimed at fostering growth and addressing challenges within the sector [2][3][4]. Policy Evolution - The gaming industry in China has transitioned from "cultural market management" to "digital content industry cultivation" and finally to "cultural industry pillarization and digital strategy" as outlined in national economic plans from the "Eighth Five-Year Plan" to the "Fourteenth Five-Year Plan" [2][3][4]. - The "Eleventh Five-Year Plan" (2006-2010) encouraged the development of digital content industries, including gaming, and emphasized cultural innovation and quality improvement [3]. - The "Twelfth Five-Year Plan" (2011-2015) aimed to make the cultural industry a pillar of the national economy, enhancing its overall strength and competitiveness [3]. - The "Thirteenth Five-Year Plan" (2016-2020) introduced the term "gaming" and focused on accelerating the development of emerging industries such as online audio-visual, mobile multimedia, and digital publishing [3]. - The "Fourteenth Five-Year Plan" (2021-2025) emphasizes expanding the supply of quality cultural products and implementing a digital strategy for the cultural industry [4]. National Policy Summary - Since 2000, various government bodies have issued policies to support and regulate the gaming industry, covering aspects such as technological development, industry standards, and minor user regulations [7][8]. - Key policies include the "Network Game Management Measures" aimed at ensuring the healthy development of the gaming industry and the "Technical Requirements for Minor User Monitoring Systems" which impose restrictions on gaming time and spending for minors [9][10]. Provincial Policies - Coastal provinces like Guangdong, Beijing, and Zhejiang have introduced supportive policies for the gaming industry, focusing on high-quality development, technological innovation, and overseas expansion [23][24]. - Specific measures include optimizing game approval processes, encouraging the development of 3A games, and supporting collaborations with historical IPs [24][25]. Market Outlook - As of mid-2025, China's gaming industry is projected to have an overseas market size of $9.501 billion, reflecting a year-on-year growth of 11.07% [20]. - The government aims to enhance the global competitiveness of the gaming industry by promoting the entire value chain from IP creation to overseas operations [20].

Market Overview - The A-share market showed mixed performance, with the Shanghai Composite Index down 0.01%, while the Shenzhen Component Index rose by 0.67% and the ChiNext Index increased by 1.58% [1] - The total trading volume in A-shares reached 2.39 trillion yuan, compared to 2.35 trillion yuan the previous day [1] Game Sector Performance - The game sector has rebounded significantly since September 24 of last year, driven by valuation recovery and a new growth cycle [1] - The game ETF (159869) has seen a year-to-date increase of over 67% and a 108% increase over the past year [9][10] Growth Drivers in the Game Sector - The game sector is experiencing a threefold growth impetus, including new game approvals, advancements in AI, MR (Mixed Reality), cloud gaming, and international expansion [10][15] - From January to August this year, the number of game approvals increased by 21% year-on-year, with a total of 1,119 licenses issued [12] - AI applications in gaming are becoming widespread, enhancing user engagement and monetization potential [13] - The cloud gaming infrastructure is improving, making it more accessible and changing distribution channels [13] Financial Performance - In the first half of 2025, the game sector achieved revenue of 54.45 billion yuan, a year-on-year increase of 22.17%, with net profit rising by 74.95% to 8.05 billion yuan [18] - The leading companies in the A-share game sector have rolling P/E ratios mostly between 20-35 times, indicating a significant recovery from previous years [21] Investment Opportunities - The game ETF (159869) tracks the China Animation and Game Index, including major players like Giant Network, Keai Network, and others, and has seen significant capital inflow, reaching nearly 10.62 billion yuan in the last 10 days [23][26] - The ETF provides a convenient way for investors to participate in the game sector without needing extensive knowledge of individual companies [22][26] Conclusion - The game industry is evolving into a growth-oriented sector, driven by technological advancements and global market expansion, requiring investors to adopt a forward-looking perspective to identify quality companies [28]

Group 1 - The gaming sector is experiencing growth, with the approval of 145 domestic games and 11 imported games in September 2025, indicating a positive regulatory environment [4][5] - Major gaming companies like Tencent and NetEase received approvals for new games, which is expected to enhance their product lines in the ACG and social gaming sectors [5] - In the first half of 2025, 23 A-share gaming companies reported total revenue of 53.841 billion yuan, a year-on-year increase of 22.78%, with net profits reaching 8.027 billion yuan, significantly higher than previous years [5][6] Group 2 - The overseas revenue from self-developed games exceeded 9.5 billion USD in the first half of 2025, showing a growth of over 11%, highlighting the global expansion of Chinese gaming companies [6] - 32 Chinese companies ranked in the global top 100 mobile game publishers, collectively generating 2.04 billion USD, which accounted for 35.1% of the total revenue of the top 100 publishers [6] - The gaming industry is expected to maintain high prosperity due to three driving factors: AI empowerment, high growth from overseas markets, and favorable supply-side policies [6][7] Group 3 - The media sector is witnessing a rise in AI applications, which is expected to reshape the industry landscape and enhance cultural confidence through content output [7] - The gaming sector is anticipated to see continued high demand and supply resonance, with a focus on companies that show high growth potential in their upcoming quarterly reports [7]

Core Insights - The event in Shenzhen aimed to support private enterprises in expanding their international market presence, specifically focusing on the gaming industry [1][4] - The Shenzhen government introduced policies to encourage game technology research and development, offering financial support for recognized projects [4][11] - The global gaming market is projected to generate over $230 billion in revenue by 2025, indicating significant growth opportunities for Shenzhen's gaming sector [11] Group 1: Policy and Support Framework - The Shenzhen government outlined measures to accelerate the development of digital creative industry clusters, emphasizing support for game technology and content originality [4] - The "Shenzhen Outbound E-Station" platform integrates over 70 government services and collaborates with more than 200 professional service organizations to assist companies in product, investment, and service exports [4][11] Group 2: Market Opportunities and Insights - Vistra provided insights on global expansion paths and compliance management for gaming companies, highlighting the importance of equity structure and employee incentive plans [7] - Standard Chartered Bank focused on cross-border fund management and introduced tools for cash flow management, aiding companies in overcoming financial barriers [7] - RuStore discussed the Russian gaming market, presenting itself as a convenient platform for Chinese game developers with over 600 million active users [7] Group 3: Collaboration and Investment - Three Shenzhen gaming companies signed cooperation agreements to receive comprehensive support for their overseas investment projects, with a total planned investment of 8 million yuan [10] - The event facilitated resource connections and collaboration intentions among participating companies, enhancing the network of Shenzhen's gaming industry [10] Group 4: Future Projections - Shenzhen's service trade is expected to exceed $140 billion in 2024, positioning it as a leader among sub-provincial cities in China [11] - The gaming industry is poised to benefit from global market expansion, with Shenzhen aiming to leverage its strengths in research and operations to enhance its global presence [11]

Group 1: Game IP Business Strategy - The company has established a multi-dimensional classic category layout in the game IP sector, successfully launching several recognized IP adaptations such as "Romance of the Three Kingdoms 2017" and "Dynasty Warriors" [2][3] - The core resources of the IP game business are now fully focused on the development and optimization of "Dynasty Warriors: The World," which has obtained an import license and is currently in a critical review phase, with plans for multiple player tests to refine the product experience [3][5][6] - The company aims to transition from single IP operations to a comprehensive system of customized development and independent publishing, with "Dynasty Warriors: The World" expected to be a key growth driver for the IP business [3][6] Group 2: Original IP Development - The original IP game "Star Wings" has performed exceptionally well since its launch in Japan, ranking second in local app store charts and topping the Steam Japan sales chart, with over 80% of revenue coming from overseas [4] - The company plans to deepen its game IP business by solidifying long-term partnerships with international IP holders and accelerating the globalization of original IP through diverse collaborations [4] Group 3: New Game Releases and Performance - The company is focusing on the upcoming release of "Magical Bopi," an innovative pet-catching game, which has completed multiple testing phases and is set for a full platform launch in 2025 [6] - The independent game "Heroic Legend" has received positive reviews and has expanded its storyline with over 300,000 words of new content, indicating strong sales and player engagement [7] Group 4: AI Development and Applications - Since 2021, the company has been exploring AI applications, establishing a comprehensive AI entertainment platform that supports core business areas like gaming and social media [8] - Key AI products include the music social app "Give Mic," which integrates AI technology for enhanced user experience, and the gaming social app "Dai Dai eSports," which is developing AI-driven social features [8] Group 5: Online Entertainment Platform Growth - The online entertainment platform has benefited from the recovery of the PC gaming market, leveraging its strong market share in offline venues like internet cafes and eSports hotels [9][10] - The mobile advertising business has seen significant growth, driven by cross-platform advertising needs and partnerships with major media platforms, capitalizing on the resurgence of the PC gaming market [10]

Core Viewpoint - The gaming industry in China has experienced a significant rebound in performance and stock prices, driven by multiple favorable factors including the continuous issuance of game licenses, strong product performance, and successful expansion into overseas markets [1][5][6]. Industry Performance - The A-share gaming sector has seen a remarkable increase, with the Shenyin Wanguo gaming industry index surpassing 4000 points, marking a new high since 2017. The index has risen nearly 80% year-to-date, ranking third among secondary industry indices [5][6]. - From 2017 to 2024, China's gaming market revenue has grown from 203.6 billion to 325.8 billion yuan, with a notable turnaround beginning in the second half of last year [4][5]. Company Highlights - Several gaming companies have reported impressive stock price increases, with ST Huatuo and Giant Network both exceeding 200% growth this year. ST Huatuo's market capitalization has surpassed 140 billion yuan, making it the highest in the A-share media sector [5][6]. - Specific companies like ST Huatuo and Giant Network have seen substantial revenue growth, with ST Huatuo's revenue increasing by 70.3% in 2024 and continuing to rise by 85.5% in the first half of this year [7][8]. Factors Driving Growth - The resurgence in the gaming sector is attributed to several factors: overall industry performance recovery, cost reduction and efficiency gains from AI technology, disclosure of high-revenue products, and the explosion of mini-game ecosystems [6][7]. - The number of game licenses issued has significantly increased, with 1,119 licenses granted by August this year, reflecting a strong policy support for the industry [6][8]. Future Outlook - The gaming industry is expected to maintain its growth momentum due to the deep accumulation of resources by domestic gaming companies, which have developed a robust pipeline of new products [8][9]. - Analysts predict that the current prosperous situation may continue for the next 1 to 2 years, although the growth model and market dynamics may evolve, focusing more on quality and long-term operational capabilities rather than sheer quantity [9].