Core Viewpoint - The A-share gaming sector has shown significant strength since April 2023, with the China Animation and Gaming Index rising over 30% from its low point in early April, indicating positive changes in the industry [3][6]. Policy Support and Market Dynamics - The gaming industry has received continuous policy support, with the National Press and Publication Administration issuing 158 game copyright numbers in June 2025, marking a new high since the regulatory pause in 2021 and 2022 [7][9]. - In the first half of 2025, a total of 812 new games were approved, with 757 being domestic games, reflecting a more than 20% increase compared to the same period in 2024, signaling a shift towards high-quality development in the gaming sector [9][10]. - Various provinces and cities have issued policies to support the high-quality development of the gaming and esports industries, with Beijing's recent measures focusing on optimizing reviews and promoting quality content [10]. Leading Companies and Market Performance - The top ten stocks in the Animation and Gaming Index account for 73.41% of the index's weight, with the top five stocks representing 49.05%, indicating that leading companies are likely to benefit more from the ongoing industry reforms [11]. - Notable companies such as Kayi Network, Giant Network, and Sanqi Interactive have seen significant stock price increases since early April, with gains of 30.28%, 106.46%, and 40.53% respectively [14][13]. AI Integration in Gaming - The integration of AI in gaming is reshaping the industry, with companies like Giant Network pioneering AI-driven gameplay, enhancing user experience and product innovation [15][18]. - Sanqi Interactive has developed an AI model named "Xiao Qi," which enhances various operational aspects, including game development and marketing, significantly improving efficiency [19][21]. International Expansion and Cultural Export - The gaming industry is focusing on international expansion, with China's game exports reaching $18.557 billion in 2024, a 13.39% increase year-on-year, marking a new high [25][26]. - Major companies are actively pursuing global markets, with Sanqi Interactive's upcoming titles targeting international audiences, reflecting a strong commitment to globalization [27][29]. Industry Outlook - The combination of supportive policies, AI advancements, and cultural exports positions the domestic gaming industry for a transformative period, potentially leading to a "DeepSeek" moment in the sector [30][31].

Core Viewpoint - The A-share gaming sector has experienced significant growth, with a daily increase of 4.89% as of June 30, and a cumulative monthly increase of over 14%, while the year-to-date increase exceeds 30% [2] Group 1: Market Dynamics - The release of game licenses has been a major catalyst, with 147 domestic and 11 imported game licenses issued in June, marking a new monthly high since 2022 [3] - The total number of domestic game licenses reached 757 in the first half of 2025, reflecting a growth of over 20% compared to the same period in 2024, indicating a trend of regulatory easing [3] Group 2: Policy Support - Various regions, including Guangdong, Beijing, Zhejiang, and Shanghai, have introduced supportive policies for the gaming industry, enhancing investor confidence [5] - Beijing announced comprehensive support for the gaming and esports industry, planning subsidies for original game development and AIGC technology applications [5] Group 3: Industry Recovery - The domestic gaming market's sales revenue exceeded 1.4 trillion yuan from January to May 2025, with a year-on-year growth of 16.99%, and mobile game sales surpassing 1 trillion yuan [6] - Securities firms have a positive outlook on the gaming sector, citing stable license issuance and improved supply conditions as factors driving growth [6] Group 4: Stock Performance - The top 20 gaming stocks in A-shares have shown strong performance, with an average increase of 15.21% over the past month, and over six stocks rising more than 20% [9] - Giant Network led the list with a remarkable 60.10% increase in the past month, attributed to new game approvals [10] Group 5: Institutional Interest - Several gaming stocks have garnered significant institutional interest, with Perfect World and Shenzhou Taiyue having fund holdings exceeding 10% [11] - Key stocks like Kayi Network have a fund holding ratio of 15.62%, indicating high institutional attention [12] Group 6: Financial Performance - Among the top gaming stocks, four companies reported over 40% revenue growth in Q1, with an average revenue growth of 35.45% [13] - Perfect World achieved a staggering 713.18% increase in net profit year-on-year, showcasing strong business expansion capabilities [14]

Investment Rating - The report maintains an "Outperform" rating for the media and internet sector [5][4][40]. Core Insights - The media sector has shown a positive performance with a 3.21% increase, outperforming the CSI 300 index but underperforming the ChiNext index [12][4]. - The issuance of gaming licenses reached a new high in June, with 147 domestic and 11 imported licenses granted [16][2]. - Key developments include ByteDance's launch of the ProtoReasoning framework to enhance reasoning capabilities in large language models, and Xiaomi's introduction of AI glasses priced from 1999 yuan [2][18]. Summary by Sections Market Performance - The media sector increased by 3.21% from June 23 to June 27, outperforming the CSI 300 index (1.95%) but underperforming the ChiNext index (5.69%) [12][4]. - Notable gainers included Huayi Brothers and Iceberg Network, while significant losers included Lianjian Optoelectronics and Perfect World [12][4]. Key Developments - The number of gaming licenses issued in June reached a record high, with 147 domestic and 11 imported licenses [16][2]. - ByteDance and Shanghai Jiao Tong University launched the ProtoReasoning framework to improve cross-domain reasoning in AI [2][17]. - Xiaomi announced its AI glasses, featuring first-person shooting and voice assistant capabilities, weighing only 40g and starting at 1999 yuan [2][18]. - OpenAI's upcoming developer conference is scheduled for October 6, 2025, in San Francisco, expected to attract over 1500 developers [18]. Investment Recommendations - The report suggests a positive short-term performance outlook, with a focus on AI applications and IP trends in the medium to long term [4][40]. - It highlights potential investment opportunities in gaming, advertising media, and film sectors, recommending specific companies such as Kaiying Network and Mango Super Media [4][41]. - The report emphasizes the importance of capitalizing on the improving fundamentals in the media sector, particularly in advertising and content production [4][41].

Market Performance - On June 30, 2025, A-shares saw collective gains with the Shanghai Composite Index rising by 0.59%, Shenzhen Component Index by 0.83%, and ChiNext Index by 1.35% [1] - The trading volume in the Shanghai and Shenzhen markets approached 1.5 trillion yuan [1] Sector Performance - Game and defense-related ETFs led the gains, with specific game ETFs and aerospace ETFs increasing by over 5% [2] - The National Press and Publication Administration approved 147 domestic games and 11 imported games, boosting the gaming sector [2] - The military industry is expected to experience a valuation restructuring, benefiting from improved asset quality and larger business scales [2] High Dividend Sector - High dividend sectors experienced a pullback, but there are expectations for supportive policies from the China Securities Regulatory Commission to enhance market confidence [3] - The central state-owned enterprise sector is viewed positively due to ongoing reforms and market management initiatives [3] ETF Trading Activity - The top trading ETF was the Credit Bond ETF with a transaction volume of 18.291 billion yuan, followed by the Shanghai Corporate Bond ETF and Short-term Bond ETF, both exceeding 10 billion yuan [4] - The Asia-Pacific Select ETF had the highest turnover rate at 157.05% [5] Upcoming ETF Issuances - Five new ETFs are set to begin fundraising on July 1, 2025, including those focused on artificial intelligence and aviation [6][7] - The newly listed ETFs will track indices related to artificial intelligence, general aviation, and free cash flow [11][12][14]

Investment Rating - The report maintains a "Buy" rating for the industry [5][8]. Core Insights - The media industry saw a weekly increase of 3.07%, ranking 18th among industries, outperforming the Shanghai Composite Index and Shenzhen Component Index [11][19]. - A total of 158 game licenses were approved by the National Press and Publication Administration, marking a recent high, with several major titles from various companies receiving approval [2][29]. - The box office for the week reached 479 million yuan, with the top film "酱园弄·悬案" accounting for 51.4% of the total [37][40]. Market Performance - The media industry (Shenwan) increased by 3.07% from June 21 to June 27, 2025, while the Shanghai Composite Index rose by 1.91% and the Shenzhen Component Index by 3.73% [11][19]. - Among the media sector, companies like 欢瑞世纪 and 冰川网络 showed significant gains, with weekly increases of 26.89% and 14.86% respectively [19][20]. Industry Key Data AI Application Data - The estimated download volume for the iPhone app Deepseek was 923,800, down 2.01% week-on-week, while the app 豆包 saw an increase of 1.58% to 2,099,400 downloads [23][24]. - 阿里夸克's downloads increased by 40.55% to 1,414,700, while 腾讯元宝's downloads decreased by 17.70% to 361,300 [23]. Gaming Data - The gaming sector saw a total of 158 licenses approved, with 147 being domestic and 11 imported [28][29]. - Popular games like 王者荣耀 and 和平精英 topped the iOS game sales chart [27]. Film Data - The total box office for the week was 479 million yuan, with "酱园弄·悬案" leading at 246 million yuan [37][40]. - Upcoming films include "侏罗纪世界：重生" and "蜡笔小新：大人王国的反击," which are highly anticipated [38][39]. Industry Key Events and Announcements - Meta launched its third-generation AI glasses, focusing on high-performance features for sports [41]. - 网易有道 open-sourced the "子曰 3" mathematical model, aimed at enhancing AI applications in education [41]. - 巨人网络 introduced a new AI gameplay feature in its game "太空杀," marking a significant innovation in the gaming sector [41].