Core Insights - The article discusses the evolving presence and perception of Chinese games at the Cologne Game Show, highlighting both achievements and challenges faced by the industry in gaining recognition in the global market [1][5][47]. Group 1: Chinese Games at Cologne Game Show - In 2025, a total of 18 Chinese games had independent booths at the core exhibition halls, indicating a significant increase in presence compared to previous years [10][31]. - Tencent's influence is notable, with 12 out of the 18 games being part of its portfolio, showcasing the company's dominance in the Chinese gaming market [11][31]. - Despite the increased presence, the atmosphere during the showcase of Chinese games was relatively subdued compared to the enthusiastic reception of Japanese and Western games [3][5]. Group 2: Market Performance and Growth - In 2024, the overseas revenue of self-developed Chinese games grew by 13.39%, significantly outpacing the global game market's growth of 3.2% [53][55]. - The article emphasizes that the growth is not limited to traditional mobile game genres but also includes shooting, action, and anime-style games, reflecting a diversification of appeal [53]. Group 3: Cultural and Strategic Shifts - The article notes a shift in the approach of Chinese game companies, moving from a defensive posture to a more confident and open engagement with international audiences [60][70]. - Companies are increasingly recognizing the importance of creating immersive experiences at exhibitions, with elaborate setups and interactive elements to attract players [39][41][46]. - The narrative suggests that the long-term strategy for Chinese games involves building relationships and ecosystems rather than aggressive market entry tactics [63][70]. Group 4: Future Outlook - The article concludes with a hopeful perspective on the future of Chinese games, suggesting that the industry is on a path to greater global integration and recognition, moving towards a collaborative rather than competitive stance in the global gaming landscape [70][73].

Core Viewpoint - The release of the new game "Black Myth: Zhong Kui" has generated significant excitement and discussion within the gaming community, indicating a strong cultural impact and potential market growth for Chinese video games [3][5][11]. Group 1: Game Release and Reception - The official announcement of "Black Myth: Zhong Kui" has sparked mixed reactions, with some players expressing disappointment over the delay of the DLC for "Black Myth: Wukong," leading to an increase in negative reviews [3][5]. - Despite the initial backlash, the promotional content for "Zhong Kui" has achieved over 12 million views on Bilibili and more than 500,000 shares, showcasing its popularity [5]. - The character Zhong Kui, rooted in Chinese folklore, has attracted interest from international audiences, with overseas gamers actively researching his background during live streams [7][9]. Group 2: Cultural Impact and Market Potential - The surge in online searches for "Zhong Kui" following the game's announcement reflects a growing global interest in Chinese cultural elements [9]. - Analysts believe that if "Zhong Kui" maintains the quality of its predecessor, it could help the domestic single-player game market surpass 10 billion yuan and facilitate the export of Chinese cultural symbols [11]. - The increasing recognition of Chinese games is evident, with multiple titles showcased at the 2025 Cologne Game Show, indicating a trend towards global acceptance of Chinese gaming products [11].

Market Performance - The Shanghai Composite Index closed up 54.66 points, a rise of 1.45%, at 3825.76 points, with a trading volume of 1.095 trillion yuan [1] - The Shenzhen Component Index rose by 246.3 points, or 2.07%, closing at 12166.06 points, with a trading volume of 1.4516 trillion yuan [1] - The ChiNext Index increased by 87.08 points, a 3.36% rise, closing at 2682.55 points, with a trading volume of 697.74 billion yuan [1] - The CSI 300 Index rose by 89.93 points, or 2.1%, closing at 4378.0 points, with a trading volume of 675.935 billion yuan [1] - A total of over 28,000 stocks rose in the market, indicating a strong bullish sentiment [1] Market Trends - The current market has experienced two phases: the first being the "anti-involution" policies that alleviated the negative feedback loop in the economy, leading to a breakout from a year-long consolidation; the second phase involves the expansion of the "profit-making effect" and the influx of previously sidelined funds [2] - The market is currently in a strong upward trend, with the index remaining above the five-day moving average for 14 consecutive trading days [4] Investment Recommendations - It is suggested to adopt a cautious approach, avoiding panic selling or blind chasing of high prices, while considering adding positions during potential pullbacks [6] - Investors are encouraged to consider the China Securities A500 ETF (159338) and the Shanghai Composite Index ETF (510760) to capture long-term investment opportunities in the stabilizing Chinese economy [6] - The CSI 300 Index still has significant room for growth compared to its 2021 peak, presenting potential for catch-up gains [6] Securities Industry Outlook - The current market activity is expected to significantly improve the performance of brokerage firms, with increased trading frequency boosting brokerage income and a recovery in IPOs benefiting investment banking services [8] - The approval of licenses for stablecoin trading by Guotai Junan International Holdings opens new business opportunities for brokerages, potentially enhancing their revenue streams [8] - The ongoing trend of mergers and acquisitions in the brokerage sector is expected to improve market sentiment and elevate valuation expectations for the securities industry [9] ETF Performance - The Securities ETF (512880) has become a market focus, showing significant gains and attracting over 2.5 billion yuan in net inflows over the past five days [10] - The Gaming ETF (516010) has also seen notable inflows, reflecting strong market interest and outperforming the CSI 300 Index with over 50% excess returns since September 2024 [11] Gaming Industry Developments - The gaming industry is witnessing a dual development path of "IP + Quality," with successful titles like "Black Myth: Wukong" boosting market sentiment [12] - The frequency and stability of game license approvals are expected to enhance market confidence, with 757 domestic and 55 imported licenses issued in 2025 [13] - The integration of generative AI models is anticipated to lower development costs and improve profitability in the gaming sector, supported by favorable monetary policies [13]

Group 1 - The Cologne International Game Show, the largest gaming exhibition globally, is currently being held in Cologne, Germany, with over 1,500 exhibitors from 72 countries, marking an 11% increase from last year [1] - More than 50 Chinese gaming companies are participating, including Tencent, MiHoYo, and others, representing a 32% growth compared to the previous year [1] - Notable Chinese games such as "Honor of Kings World," "Delta Action," and "Arknights: End of the World" have released new promotional materials at the event [1] Group 2 - Tencent's subsidiary, Salors, showcased "Destiny Trigger," introducing new breakthroughs in tactical shooting games [2] - Tencent's international gaming brand, Level Infinite, presented four products, including "Dying Light: The Beast" and "PUBG MOBILE" at the exhibition [2] - The event attracted game developers and technical teams from around the world, with Tencent's AI creative solution, VISVISE, making its debut [2]

Core Viewpoint - The article discusses the increasing prominence of Chinese games at international gaming events, particularly at the Cologne Game Show, highlighting the respect and attention they are receiving globally [4][10][39]. Group 1: Event Highlights - The Cologne Game Show featured a notable presence of Chinese games, with titles like "Black Myth: Zhong Kui" being showcased as significant new releases [4][10]. - The event included various Chinese games such as "Arknights: Endfield," "Honor of Kings: World," and "Shadow Blade Zero," indicating a strong representation of Chinese gaming products [4][10]. - The awards nominations for Chinese games, including "Shadow Blade Zero" for Best Sound and multiple nominations for "Arknights: Endfield," reflect the growing recognition of Chinese titles in the international arena [8][10]. Group 2: Historical Context and Evolution - The article contrasts the current state of gaming events with past highlights from E3, emphasizing how major gaming announcements used to create significant buzz and excitement [14][18]. - It notes the shift from physical to digital marketing strategies in the gaming industry due to the pandemic, leading to a decline in traditional events like E3 [21][22]. - Despite the rise of online marketing, there is a renewed interest in physical events, as evidenced by the high attendance at recent gaming conventions in both domestic and international contexts [21][22]. Group 3: Opportunities for Chinese Games - The success of titles like "Black Myth: Wukong" has opened new opportunities for Chinese developers in the single-player market, encouraging participation in global events [24][26]. - The article highlights the necessity for Chinese free-to-play (F2P) games to expand into global markets, especially as the mobile gaming market faces saturation [28]. - It emphasizes that the quality and design of Chinese games are breaking down barriers to international recognition, allowing them to compete on a global stage [28][39]. Group 4: Future Outlook - The article expresses optimism about the future of Chinese games, suggesting that they are on the verge of becoming significant players in the global gaming industry [39]. - It points out that the changing preferences of global gamers may provide further opportunities for Chinese developers to innovate and capture market share [39].

Core Insights - The Gamescom event in Cologne, Germany, has set a record with over 1,500 exhibitors from 72 countries, marking an 11% increase from last year [1] - More than 50 Chinese companies are participating, representing a 32% growth compared to the previous year, with notable firms like Tencent and miHoYo [2] Group 1: Event Highlights - The event features major game releases, including the highly anticipated "Black Myth: Wukong," which received enthusiastic applause during the Opening Night Live [2] - Tencent's "Delta Action" is the first self-developed FPS game from China to support cross-platform data sharing and global distribution [2] - Various Chinese games, such as "Gujian," "Honor of Kings World," and "Tomorrow's Ark: End of the World," showcased new trailers and updates during the event [2] Group 2: Exhibitor Presence - Tencent's booth for "Honor of Kings World" attracted significant attention, with players queuing to try the game [3] - Lingyoufang's "Shadow Blade Zero" featured a 500 square meter experience area, allowing players to engage in challenging boss battles [6] - Tencent's subsidiary, Salros, presented "Fate Trigger," which combines anime aesthetics with tactical gameplay, while Level Infinite showcased multiple titles including "Dying Light: The Reckoning" [9] Group 3: New Game Releases - "Rust Mobile," a mobile adaptation of the classic PC survival game, was available for public testing, maintaining the core gameplay elements of exploration and PvP combat [10] - Tencent's "Silicon Universe," now titled "Interstellar Ideal Country," offers a sandbox adventure experience with cross-platform capabilities [10] - The AI creative solution VISVISE was unveiled, covering various aspects of game art production and attracting interest from international developers [11]

Group 1 - The gaming sector experienced slight fluctuations in early trading on August 21, with the gaming ETF (159869) showing a minor decline, while stocks like Gigabit, Changyou Technology, Tianzhou Culture, and Aofei Entertainment saw gains [1] - The gaming ETF (159869) attracted a net inflow of funds totaling 111 million yuan over the past five trading days, indicating strong investor interest [1] - Tencent's new content for "Honor of Kings World" was revealed, showcasing significant progress in game development and enhancing investor confidence in future market performance [1] Group 2 - The new game "Black Myth: Zhong Kui" was officially announced, generating significant market attention and the potential to push the domestic single-player game market beyond 10 billion yuan [2] - The gaming sector is undergoing transformations driven by AI, content, and commercialization models, presenting opportunities for investment in the gaming ETF (159869) [2]

Group 1 - Tencent's Saros Studio announced the tactical shooting game "Destiny Trigger" will launch in Q1 2026 on Steam and Epic Games Store, showcasing the company's stable game development pipeline and execution capabilities [1] - The game trailer demonstrated technical strength and innovative gameplay, boosting investor confidence in the product's commercialization potential, which could lead to a valuation recovery for Tencent's gaming segment [1] - Positive testing data could catalyze short-term stock price increases, especially with expectations for overseas business growth [1] Group 2 - Eagle Horn Network's "Arknights: End of the World" was revealed at the Cologne Game Show, featuring a new character that sparked global player interest, highlighting the game's unique wasteland style and open-world exploration [2] - The ongoing development and innovation of "Arknights: End of the World" enhance investor confidence in its market performance, with potential for increased brand recognition and revenue growth [2] - The existing large fanbase of "Arknights" could further drive engagement and related product sales, expanding profit opportunities for the company [2] Group 3 - Tencent's "Honor of Kings World" showcased new gameplay and real-time graphics at the Cologne Game Show, indicating substantial progress in game development [3] - The expanded gameplay could attract a broader audience, leading to higher revenue expectations for the game [3] - Successful launch and performance of the game could provide new growth points for Tencent's gaming business, positively impacting stock price and market valuation [3]

Core Points - The game "Black Myth: Zhong Kui" was announced at the 2025 Cologne Game Show, generating significant buzz on social media [1][2] - The game is a single-player action RPG, continuing the theme of Chinese mythology and folklore, similar to its predecessor "Black Myth: Wukong" [4] - The CEO of Game Science expressed a desire to explore new gameplay experiences and features while hinting at future developments for "Black Myth: Wukong" [6] Company Strategy - Game Science aims to innovate with "Black Myth: Zhong Kui" by introducing new heroes, gameplay mechanics, and visual elements, while maintaining the essence of the original IP [6] - The company has registered multiple trademarks related to the "Black Myth" series, indicating a long-term strategy for expanding the franchise [7][8] - Industry analyst Zhang Shule suggested that maintaining the original style while enhancing quality and content is crucial for the longevity of the IP [7] Industry Context - The Cologne Game Show featured several major gaming companies, highlighting the competitive landscape in which Game Science operates [9] - Other notable announcements from the event included new titles from prominent developers, showcasing the growing interest in high-quality single-player games [9]

Investment Rating - The report maintains a positive outlook on the internet media sector, indicating an "Overweight" rating, suggesting that the industry is expected to outperform the overall market [4]. Core Insights - The report highlights the strong performance of AI applications in the US stock market, particularly noting Figma's successful IPO and its market capitalization exceeding $50 billion. Figma's integration of AI into design workflows is expected to enhance customer retention and drive revenue growth [4]. - The report identifies several key opportunities within the domestic AI application industry, including AI design, AI advertising, AI companionship/gaming, cross-border e-commerce, and education [4]. - The gaming sector is also highlighted, with Tencent's new game "Delta Action" exceeding expectations in daily active users, indicating strong growth potential despite high baseline comparisons [4]. - The report emphasizes the ongoing high demand for consumer entertainment sectors such as trendy toys, music, and concerts, with companies like Pop Mart and NetEase Cloud Music being recommended as core investment targets [4]. Summary by Sections AI Applications - Figma's revenue for 2024 is projected at $749 million, reflecting a year-over-year growth of 48%. The company's Rule of 40 score is among the top in the SaaS sector, with a revenue growth rate of 46% and an operating margin of 18% [4]. - The report suggests focusing on domestic AI design companies like Meitu, which is expected to grow at a CAGR of approximately 40% from 2024 to 2026, and Kuaishou, which has a low PE ratio of 15x [4]. Gaming Sector - Tencent's gaming growth potential is considered underestimated, with new titles like "Delta Action" performing well in the market. The report anticipates continued growth from other titles in development [4]. - Other companies such as Giant Network and Huatuo are also mentioned for their innovative game offerings and potential for future growth [4]. Consumer Entertainment - The report continues to recommend companies in the high-demand consumer entertainment sector, including Pop Mart and NetEase Cloud Music, as they have adjusted to high valuations and are entering favorable investment zones [4]. Advertising and Marketing - The collaboration between Focus Media and Alipay is noted as a significant development, aiming to create new marketing paradigms by integrating digital and physical spaces [4].