Core Viewpoint - The gaming sector is experiencing a robust recovery driven by four key factors: continuous improvement in fundamentals, marginally relaxed policies, significant valuation recovery potential, and innovation driven by AI technology [1] Group 1: Market Dynamics - The gaming ETF (159869) has shown a decrease of 2.52%, indicating a low opening followed by ongoing fluctuations, while the sector is opening up a low-position layout channel [1] - Major traditional players like Tencent, NetEase, and miHoYo have not released any blockbuster titles this year, creating considerable user space for mid-sized companies to break through [1] - Giant Network has emerged as a leader in this round, with its game "Supernatural Action Group" achieving a new revenue high on July 6, with a 192% month-on-month increase, and is expected to show strong data following the upcoming major version update [1] Group 2: Policy Environment - The issuance of game licenses has been increasing, with a total of 812 licenses issued from January to June 2025, marking an 18% year-on-year increase, and June saw the highest monthly issuance in nearly three years [1] - Various supportive policies have been introduced at both central and local levels, including the "Network Publishing Technology Innovation Leading Plan" aimed at building a long-term development mechanism for the gaming industry [1] - Zhejiang Province has released measures to support local gaming companies in expanding overseas, enhancing their external circulation capabilities [1] Group 3: Consumer Trends - The gaming industry is evolving as a new consumer category that combines cultural attributes and emotional value, transitioning from mere entertainment tools to digital companionship and emotional outlets for Generation Z users [2] - This shift is expected to provide the industry with significantly higher user stickiness and willingness to pay compared to traditional content industries, establishing a structural foundation for long-term growth [2] - The upcoming annual gaming event, ChinaJoy, is anticipated to create investment opportunities in the gaming ETF (159869), which tracks the performance of A-share listed companies in the animation and gaming industry [2]