Core Insights - The Chinese gaming market experienced a year-on-year revenue growth of 14.08% in the first half of 2025, despite a quarter-on-quarter decline of 5.89% [1][2] - The growth is attributed to strong performance from evergreen products, updates, and IP collaborations that attract players, alongside a stable issuance of game licenses [1][2] Group 1: Market Performance - The actual sales revenue of the overall Chinese gaming market reached 168 billion yuan, with a quarter-on-quarter decline of 5.89% and a year-on-year growth of 14.08% [2] - The mobile gaming sector generated 125.31 billion yuan, showing a quarter-on-quarter decline of 4.12% but a year-on-year increase of 16.55% [2] Group 2: Global Market Trends - Tencent's "Honor of Kings" was the only mobile game to surpass $1 billion in revenue in the first half of 2025, maintaining a dominant position in the market [3] - Other top revenue-generating games included "Last War: Survival Game" and "Endless Winter," while "PUBG MOBILE" and "Pokémon TCG pocket" led in revenue growth [3] Group 3: Revenue Rankings - In June 2025, Tencent's games occupied four out of the top five spots in the App Store's iPhone game revenue rankings in China, highlighting its market dominance [4] - The top five games included "Honor of Kings," "Peace Elite," "Endless Winter," "Gold Shovel Battle," and "Dungeon & Fighter: Origin" [4] Group 4: International Market - Chinese self-developed games generated $9.501 billion in overseas sales in the first half of 2025, reflecting a year-on-year increase of 11.07% despite a quarter-on-quarter decline of 5.02% [5] - "Endless Winter" by Point Interactive led the overseas mobile game revenue, with total global revenue exceeding $2.8 billion [5]

Investment Rating - The industry is rated as "Outperforming the Market," indicating a projected increase of over 10% relative to the market index in the next six months [5][30]. Core Insights - The Chinese gaming market saw a revenue increase of 14.08% year-on-year in the first half of 2025, reaching 168 billion yuan, despite a quarter-on-quarter decline of 5.89% [1][11]. - The mobile gaming sector specifically achieved a revenue of 125.31 billion yuan, with a year-on-year growth of 16.55% and a quarter-on-quarter decline of 4.12% [1][14]. - Strong performance from evergreen products and stable issuance of game licenses contributed to the market growth [1][28]. Summary by Sections Chinese Gaming Market - The overall gaming market in China generated a revenue of 168 billion yuan in the first half of 2025, marking a year-on-year growth of 14.08% and a quarter-on-quarter decline of 5.89% [1][11]. - The mobile gaming market's revenue reached 125.31 billion yuan, with a year-on-year increase of 16.55% driven by strong performances from popular titles and new product launches [1][14]. Global Gaming Market - Tencent's "Honor of Kings" was the only mobile game to surpass $1 billion in revenue in the first half of 2025, leading the global revenue rankings [2][17]. - The top three games in revenue growth included "PUBG MOBILE," "Endless Winter," and "Pokémon TCG pocket," each achieving over $170 million in growth [2][17]. Revenue Rankings - In June 2025, Tencent's games occupied five spots in the top ten revenue rankings on the Chinese App Store, maintaining a dominant market position [3][19]. - The top five games included "Honor of Kings," "Peace Elite," and "Endless Winter," with Tencent holding four of the top five positions [3][19]. Overseas Market - Chinese self-developed games generated $9.501 billion in overseas revenue in the first half of 2025, reflecting an 11.07% year-on-year increase [4][23]. - "Endless Winter" led the overseas revenue rankings, with total global revenue exceeding $2.8 billion [4][26]. Investment Recommendations - The report suggests focusing on companies with abundant game license reserves, strong R&D capabilities, frequent high-quality IP collaborations, and stable content output [4][28].

Core Insights - The gaming industry in China is experiencing a significant increase in game license approvals, with 134 licenses issued in July, including 127 domestic and 7 imported games. The total number of licenses issued from January to July reached 946, marking a 19% year-on-year growth [1] Industry Developments - Multiple supportive policies from central and local governments are being implemented to foster the long-term development of the gaming industry [1] - Major traditional gaming companies like Tencent, NetEase, and miHoYo have not released any blockbuster titles this year, creating a user gap that provides an opportunity for mid-sized companies to launch new products [1] - Non-headline gaming companies are beginning to benefit from new product cycles, showing a clear trend of performance recovery [1] Market Dynamics - Recent adjustments in the gaming sector are primarily driven by structural market changes rather than fundamental factors. If capital shifts from high to low valuations, the adjusted gaming sector may demonstrate higher cost-effectiveness in terms of valuation and growth potential [1] - The gaming ETF (516010) tracks the anime and gaming index, selecting listed companies in the A-share market related to the anime, gaming, and associated industries, serving as an important indicator of the development of China's anime and gaming industry [1]

Investment Rating - The industry is rated as "Outperforming the Market" with an expected increase of over 10% relative to the market index in the next six months [4][26]. Core Insights - In June 2025, six key mobile games were launched, with "Silver and Crimson" and "Dragon Soul Traveler" standing out in performance [1][10]. - "Silver and Crimson" achieved significant success due to its unique art style, user-friendly design, and global release strategy, reaching a peak download of 112,575 on June 28 and generating total revenue of $1,689,405 by July 15 [2][17]. - "Dragon Soul Traveler" features a Japanese light comedy style and has shown strong performance with a total revenue of $2,792,902 by July 15, despite being launched later than "Silver and Crimson" [3][20]. Summary by Sections New Game Releases - Six new mobile games were launched in June 2025, including titles from various publishers such as "Bubble Bubble" by Eagle Horn Network and "Final Fantasy 14: Crystal World" by Tencent [1][10]. Game Performance - "Silver and Crimson" has a unique dark gothic aesthetic and a strategy card RPG format, achieving a high user retention rate and ranking first in the App Store free charts in multiple regions [2][13]. - "Dragon Soul Traveler" employs a fragmented narrative and innovative gameplay, achieving a peak download of 113,674 on June 7 [3][22]. Investment Recommendations - The report suggests that the gaming license issuance will remain stable, and the market environment is expected to stabilize, making new game performances promising. It recommends focusing on quality game developers with innovative capabilities [24].

Investment Rating - The industry investment rating is "Recommended," indicating a favorable outlook for the industry with expectations that the industry index will outperform the benchmark index [20]. Core Insights - The gaming market in China is showing steady recovery, with a market size of 28.051 billion yuan in May 2025, reflecting a year-on-year growth of 9.86% and a month-on-month increase of 2.56% [4][5]. - The issuance of game licenses has reached new highs, benefiting from policy support that has significantly reduced the average approval cycle and improved the efficiency of small and medium-sized enterprises [6]. - Mobile games are performing particularly well, with a market size of 21.177 billion yuan in May 2025, growing by 11.96% year-on-year, surpassing the overall industry growth rate [8][9]. - The overseas sales revenue of self-developed games reached 1.577 billion USD in May 2025, marking a year-on-year increase of 6.93% and a month-on-month growth of 1.50% [13][17]. Summary by Sections Market Overview - The gaming market in China has shown a steady recovery, with a market size of 28.051 billion yuan in May 2025, which is a 9.86% increase year-on-year and a 2.56% increase month-on-month [4][5]. - The client game market's growth is primarily driven by new and subsequent new releases, with significant contributions from titles like "Victory Goddess: New Hope" and "Three Kingdoms Fantasy Continent 2: Song of the Hero" [5]. Game License Issuance - The issuance of game licenses has shown a stepwise growth trend, with a total of 812 licenses issued from January to June 2025, a year-on-year increase of 21% [6]. - The average monthly issuance increased from 121 licenses in the second half of 2024 to 135 licenses in the first half of 2025, reflecting a 12% year-on-year growth [6]. Mobile Game Performance - The mobile game market size reached 21.177 billion yuan in May 2025, with a year-on-year growth of 11.96%, outpacing the overall industry growth [8]. - Notable new releases include "Brave Land" and "Three Kingdoms Fantasy Continent 2: Song of the Hero," which contributed significantly to the revenue [8]. Overseas Market Growth - The overseas sales revenue of self-developed games reached 1.577 billion USD in May 2025, with a year-on-year increase of 6.93% and a month-on-month increase of 1.50% [13]. - Several titles, such as "Kingshot" and "Tasty Travels: Merge Game," have shown remarkable performance in international markets, contributing to the overall growth [14][17].

Group 1 - The core viewpoint of the articles highlights the structural growth opportunities in the media industry driven by policy support and technological advancements, particularly in gaming product cycles, AI multimodal applications, and short dramas going overseas [1] - Huatai Securities reports that the number of game approvals reached a recent high in June, with 158 games approved, including 147 domestic online games and 11 imported games, indicating ongoing regulatory support for the healthy development of the industry [1] - The stability of policies enhances the predictability of domestic manufacturers' R&D and distribution plans, promoting a shift of resources towards high-quality and long-term development [1] Group 2 - The gaming industry is experiencing policy incentives that boost domestic demand, while technological empowerment strengthens product competitiveness, creating significant growth potential in overseas markets [1] - The game ETF tracks the animation and gaming index, which is compiled by China Securities Index Co., and reflects the overall performance of listed companies in the animation and gaming industry [1] - The index serves as an important indicator for measuring the development of China's animation and gaming industry, characterized by distinct industry features and style configurations [1]

Investment Rating - The industry maintains a "Recommended" rating, indicating a positive outlook for the gaming sector with expectations of outperforming the benchmark index [4]. Core Insights - In June 2025, the National Press and Publication Administration approved 147 domestic game licenses and 11 imported game licenses, showing a significant increase compared to the same period in 2024, which is expected to boost market confidence in the gaming industry [4]. - Key games approved include titles from major companies such as Tencent, NetEase, and Giant Network, which are anticipated to contribute positively to their financial performance [4]. - The report highlights the strong performance of several companies, including Tencent's long-standing games, Giant Network's new releases, and the proactive measures taken by companies like Kaiying Network in AI gaming [4]. Company Summaries - **Kaiying Network**: Market cap of 37.5 billion, with a 2025 EPS forecast of 0.98 and a strong recommendation rating [2]. - **Giant Network**: Market cap of 41.4 billion, with a 2025 EPS forecast of 0.84 and a strong recommendation rating [2]. - **Yaoji Technology**: Market cap of 11.2 billion, with a 2025 EPS forecast of 1.79 and a strong recommendation rating [2]. - **Shenzhou Taiyue**: Market cap of 22.1 billion, with a 2025 EPS forecast of 0.65 and a strong recommendation rating [2]. - **G-bits**: Market cap of 19.8 billion, with a 2025 EPS forecast of 14.80 and a strong recommendation rating [2]. Industry Scale - The gaming industry consists of 161 listed companies, with a total market capitalization of 1,740.9 billion and a circulating market capitalization of 1,580.9 billion [2]. Industry Index Performance - The absolute performance of the industry over the last 12 months is 42.6%, indicating strong growth [3]. - Relative performance metrics show positive trends, with expectations of continued growth in the coming months [3]. Related Reports - The report references several related analyses that discuss ongoing trends and performance in the gaming sector, highlighting the continuous improvement in revenue and the emergence of new gaming titles [3].

Investment Rating - The industry investment rating is "stronger than the market," indicating an expected relative increase of over 10% in the industry index compared to the broader market within the next six months [7]. Core Insights - The report highlights a record high in game license approvals in June, with 147 domestic games and 11 imported games receiving approval, marking a total of 757 domestic games approved year-to-date [2]. - Tencent is increasing its focus on the FPS game segment, with two FPS titles, "Crossfire: Rainbow" and "Tactical Squad: Dawn Assault," receiving approval. These games are expected to leverage Tencent's established IP and development expertise for market success [2][3]. - Kingsoft's "Duck Duck Goose," a social deduction game, has also received approval for its mobile version, positioning it as a strong competitor against other party games in the market [3]. Summary by Sections Game License Approvals - In June, a total of 147 domestic games and 11 imported games were approved, with notable titles from major developers such as Tencent and Kingsoft [2]. - The approval of these games reflects a diverse range of genres and established companies, indicating a robust supply side in the gaming industry [2]. Tencent's FPS Strategy - Tencent's approval of two new FPS games demonstrates its commitment to this genre, with "Crossfire: Rainbow" being a new installment in a well-known series and "Tactical Squad: Dawn Assault" being a localized version of an existing game [2]. - The development teams behind these games have significant experience in FPS game production, which may enhance their market performance [2]. Competitive Landscape - The approval of "Duck Duck Goose" is expected to intensify competition in the party game segment, particularly against titles like NetEase's "Egg Party" and Tencent's "Dream Star" [3]. - The report suggests that the gaming market is becoming increasingly competitive, with new entrants and established players vying for market share [3].

Market Overview - The Shanghai Composite Index rose by 0.59% to close at 3444.43 points, with a daily high of 3447.46 points [1] - The Shenzhen Component Index increased by 0.83% to close at 10465.12 points, reaching a high of 10470.24 points [1] - The ChiNext Index saw a rise of 1.35%, closing at 2153.01 points, with a peak of 2154.0 points [1] ETF Market Performance - The median return for stock ETFs was 0.82%, with the highest return from the Southern Deep Shenzhen Main Board 50 ETF at 3.39% [2] - The highest performing industry index ETF was the China Securities Satellite Industry ETF, yielding 3.67% [2] - The top thematic index ETF was the China Securities Animation Game ETF, which achieved a return of 5.99% [2] ETF Performance Rankings - The top three ETFs by return were: Huatai-PB China Securities Animation Game ETF (5.99%), Huaxia China Securities Animation Game ETF (5.95%), and Guotai China Securities Animation Game ETF (5.82%) [6] - The three ETFs with the largest declines were: China Securities Bank AH Price Preferred ETF (-1.24%), Penghua China Securities Bank ETF (-0.63%), and Tianhong China Securities Bank ETF (-0.59%) [8] ETF Fund Flows - The top three ETFs by fund inflow were: Huatai-PB China Securities A500 ETF (inflow of 2.241 billion), Southern China Securities A500 ETF (inflow of 1.650 billion), and Harvest China Securities A500 ETF (inflow of 1.055 billion) [9] - The ETFs with the largest outflows were: Huaxia Shanghai 50 ETF (outflow of 1.477 billion), E Fund CSI 300 ETF (outflow of 961 million), and Southern CSI 1000 ETF (outflow of 924 million) [11] ETF Margin Trading Overview - The top three ETFs by margin buying were: Huaxia Shanghai Sci-Tech Innovation Board 50 ETF (558 million), Guotai China Securities All Index ETF (301 million), and E Fund ChiNext ETF (223 million) [12] - The highest margin selling amounts were for: Southern CSI 500 ETF (105 million), Southern CSI 1000 ETF (79.72 million), and Huaxia CSI 1000 ETF (21.96 million) [14] Institutional Insights - Shenwan Hongyuan highlights the gaming sector's potential for performance growth, with a record number of game approvals in June, indicating a supportive regulatory environment [15] - Huaxi Securities notes that the approval of 158 games in June reflects a stable regulatory approach, enhancing predictability for domestic developers and promoting high-quality development in the industry [15]

Group 1 - The core viewpoint of the news highlights a significant increase in the issuance of game licenses in June, with 147 domestic and 11 imported games approved, marking a new high for the year [1] - The overall trend indicates that by the first half of 2025, a total of 757 domestic game licenses have been issued, continuing the normalized issuance pace observed this year [1] - Several key new games are set to launch, providing a positive outlook for the industry's performance in the second half of the year, including Tencent's "Under the Human" and Perfect World's "Otherworld" [1] Group 2 - According to the "May 2025 China Game Industry Monthly Report," the total market revenue reached 28.051 billion yuan in May, reflecting a year-on-year growth of 9.86% [2] - The esports game segment showed strong performance with sales revenue of 14.523 billion yuan, a year-on-year increase of 28.22% [2] - The continuous issuance of game licenses reinforces the sustainable growth logic of the gaming sector, supported by structural growth driven by the esports ecosystem and overseas product iterations [2]