Core Insights - The A-share market saw a collective rise in the three major indices on Monday, with the Shanghai Composite Index up by 0.9%, the Shenzhen Component Index up by 2.05%, and the ChiNext Index up by 2.74. The total trading volume in the Shanghai and Shenzhen markets reached 21,612.1 billion [1][7] - In terms of industry performance, non-bank financials, non-ferrous metals, and electrical equipment led the gains, while coal, banking, and social services lagged behind. Among concept sectors, zinc, nickel, and lead metals saw the highest increases, while pork, military restructuring concepts, and cultivated diamonds experienced declines [1][7] Market Performance - Domestic market indices closed as follows: Shanghai Composite Index at 3,862.53 (+0.90%), Shenzhen Component Index at 13,479.43 (+2.05%), and ChiNext Index at 3,238.01 (+2.74%). The total trading volume was 21,612.1 billion [4][7] - Internationally, the US indices also rose, with the Dow Jones up by 0.15%, S&P 500 up by 0.26%, and Nasdaq up by 0.48%. The Hang Seng Index in Hong Kong increased by 1.89% [4][7] Important News - The Central Committee of the Communist Party of China held a meeting to discuss the 15th Five-Year Plan, emphasizing high-quality development and the need for a new development model that combines effective markets with proactive government roles [2][8] - The National Development and Reform Commission announced a new policy financial tool totaling 500 billion, aimed at supplementing project capital. This initiative is expected to leverage investments of approximately 6 trillion [2][8] Industry Insights - In the construction machinery sector, excavator and loader sales showed double-digit year-on-year growth in August, with excavator sales reaching 16,523 units (+12.8%) and loader sales at 9,440 units (+13.3%) [9][10] - The recovery in the construction machinery industry is supported by domestic equipment renewal policies and infrastructure projects, with expectations for sustained growth in both domestic and international markets [12] - The gaming industry saw a high volume of game approvals in September, with 145 domestic and 11 imported games receiving licenses, indicating a robust recovery in the sector [13][14]

Core Insights - The issuance of game licenses in September remains high, with 145 domestic games and 11 imported games approved, indicating a stable trend in the normalization of license issuance and ongoing industry recovery [1][2] Group 1: Game License Issuance - In 2023, a total of 1,195 domestic games have been approved, with 145 approved in September alone, including titles from major companies like Tencent and miHoYo [2] - For imported games, 80 have been approved year-to-date, with 11 approved in September, featuring titles from companies such as Chuangmeng Tiandi and Xinghui Games [2] Group 2: Market Trends and Competitive Landscape - miHoYo's new game, "Honkai: Inheritance Spirit," combines world exploration with pet-raising elements and features a PVE auto-chess gameplay, which is expected to enhance player engagement [3] - The game has garnered significant interest, with over 4.09 million pre-registrations by September 25, indicating strong market potential [3] - The competition in the pet-raising game segment is intensifying, with several major players like Tencent and other developers also launching similar titles [3]

Group 1 - The core viewpoint of the article highlights that the approval volume of game licenses in September remains high, covering various types of products and well-known manufacturers [1] - From the beginning of the year to date, a total of 1,195 domestic games have been approved, with 145 games approved in September, including titles from Tencent, miHoYo, NetEase, and others [1] - For imported games, a total of 80 games have been approved this year, with 11 games approved in September, including titles from Chuangmeng Tiandi and Xinghui Games [1] Group 2 - The game ETF (516010) tracks the animation and gaming index (930901), which selects listed companies involved in animation production, game development, platform operation, and related industry chains to reflect the overall performance of the sector [1] - The index focuses on innovation and growth in the animation and gaming field, covering the entire industry chain from content creation to distribution channels, showcasing distinct industry representation and market vitality [1]

Industry Dynamics - In August 2025, China's gaming market revenue reached 29.263 billion yuan, showing a month-on-month increase of 0.61% but a year-on-year decline of 13.01% [3] - The actual sales revenue of domestically developed games in overseas markets was 1.68 billion USD, reflecting a month-on-month decrease of 0.79% and a year-on-year decrease of 10.66% [3] - The year-on-year decline in revenue is attributed to the high revenue base from the previous year due to the success of the game "Black Myth: Wukong," and the lack of similarly impactful new releases during the current period [3] Game Licensing - On September 24, the National Press and Publication Administration issued licenses for 156 games, including 145 domestic and 11 imported titles [4] - Notable titles include Tencent's "Return Ring," NetEase's "Star Drawing Friends," and miHoYo's "Honkai: Inheritance Spirit" [4] Domestic Company News - NetEase announced the shutdown of "The Legend of the Condor Heroes," effective November 24, due to the expiration of its IP cooperation with Minghe Publishing and adjustments in operational strategy [5] - Tencent's UK studio Splash Damage has been sold to overseas private equity investors; the studio was previously acquired by Tencent in 2022 [6] - Tom Cat's former chairman Wang Jian reduced his holdings by 31.58 million shares, exiting the major shareholder position, with his remaining stake now below 5% [7] - Wang Jian's history of share reductions includes 71 transactions from 2019 to 2020, totaling over 700 million yuan, raising concerns about the company's fundamentals [8] - Kingsoft's subsidiary, Kingsoft Game, has formed a strategic partnership with Sega and Rovio to reintroduce the popular IP "Angry Birds" to the Chinese market [9] Regulatory Compliance - The Mexican Ministry of Finance proposed an 8% special tax on games containing "violent" content as part of its 2026 budget plan, applicable to both domestic and foreign companies [10] Major Transactions - Electronic Arts (EA) is reportedly negotiating a privatization deal valued at approximately 50 billion USD (about 356.74 billion yuan), which could become the largest leveraged buyout in history [11] eSports Events - The qualification matches for the 2025 League of Legends World Championship concluded, with teams BLG, AL, TES, and iG representing the LPL region [12]

Core Viewpoint - The gaming industry is expected to perform well in the third quarter due to the release of quality content, with a positive long-term outlook for the sector [1]. Group 1: Market Performance - The media index increased by 0.63%, ranking 5th among 31 industries, underperforming compared to the Shanghai and Shenzhen 300 index (up 1.07%) and the ChiNext index (up 1.96%) [2]. - The total number of domestic game licenses issued this year has reached 1,195, significantly surpassing the 959 licenses issued during the same period last year [2]. Group 2: Game License Distribution - In September, 145 domestic game licenses were issued, including titles from major companies such as Tencent, NetEase, and miHoYo [2]. - Additionally, 11 imported game licenses were granted, featuring notable titles like "Super Hole" and "MapleStory: New Chapter" [2]. Group 3: Market Size and Trends - In August, the domestic gaming market size was 29.263 billion yuan, showing a month-on-month growth of 0.61% but a year-on-year decline of 13.01% due to high base effects from the previous year [3]. - Mobile game revenue was 21.521 billion yuan, with a month-on-month increase of 0.85% and a year-on-year decrease of 4.25%, while client game revenue was 6.563 billion yuan, showing a month-on-month decline of 1.11% but a year-on-year increase of 17.59% [3].

Core Insights - The article highlights the stable approval process for domestic game licenses in China, with a significant increase in the number of licenses issued in 2025 compared to the previous year [1][3] - The gaming market in August 2025 showed stable performance, with notable revenue contributions from high-quality products, indicating a positive outlook for game development companies [2][3] Group 1: License Approval and Supply - On September 24, 2025, the National Press and Publication Administration approved 145 domestic games and 11 imported games, indicating a robust supply of game licenses [1] - The total number of domestic game licenses issued in 2025 has reached 1,195, significantly higher than the 959 licenses issued in the same period last year, with an average monthly issuance of 132.8 licenses [1] Group 2: Market Performance - In August 2025, the domestic gaming market generated revenue of 29.263 billion yuan, reflecting a month-on-month growth of 0.61% but a year-on-year decline of 13.01% due to a high base from the previous year [2] - Mobile game revenue was 21.521 billion yuan, with a month-on-month increase of 0.85% and a year-on-year decrease of 4.25%, while client game revenue was 6.563 billion yuan, showing a month-on-month decline of 1.11% but a year-on-year increase of 17.59% [2] Group 3: Investment Outlook - The stable approval rhythm for game licenses and the rich supply of game products lead to a favorable investment outlook for companies with strong content reserves and solid fundamentals [3]

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 A-share gaming stocks have shown strong performance, with companies like Iceberg Network rising nearly 10%, and others such as Electric Soul Network, Perfect World, and 37 Interactive Entertainment also experiencing gains. The gaming ETF (159869) has surged over 3.5% [1] - In the past 10 trading days, the gaming ETF (159869) has seen a net inflow of funds amounting to 1.062 billion yuan, indicating strong investor interest [1] - The National Press and Publication Administration announced the approval of 156 games in September, including 145 domestic games and 11 imported games, marking the third month this year with over 150 game approvals [1] Group 2 - Among the newly approved games, notable titles include Tencent's "Return to the Ring," NetEase's "Starry Friends," and Mihayou's "Honkai: Inheritance Spirits," which has over 4.07 million pre-registrations [2] - The total number of game approvals this year has reached 1,275, maintaining a stable monthly issuance frequency and high approval numbers [2]

Core Viewpoint - The gaming industry in China is experiencing a significant increase in the issuance of domestic game licenses, with a total of 1,195 licenses granted in the first nine months of the year, surpassing the 959 licenses issued during the same period last year [1][3]. Group 1: License Issuance - In September, 145 domestic games were approved, contributing to a total of 1,195 domestic licenses issued this year, which is significantly higher than the 959 licenses issued in the same period last year [1][3]. - The average monthly issuance of licenses has increased from 88.8 in 2023 and 108.8 in 2024 to 132.8 in the first nine months of this year [1][3]. Group 2: Market Performance - The gaming market in August recorded a revenue of 29.263 billion yuan, showing a month-on-month growth of 0.61%, although it experienced a year-on-year decline of 13.01% due to high revenue from a major game in the previous year [4]. - Mobile game revenue reached 21.521 billion yuan, with a month-on-month increase of 0.85% and a year-on-year decline of 4.25%, while client game revenue was 6.563 billion yuan, showing a month-on-month decrease of 1.11% but a year-on-year increase of 17.59% [4]. Group 3: Key Products and Companies - Tencent's game "Delta Action" saw its daily active users rise to 30 million in September, topping the iOS sales chart, indicating strong profit contributions [4]. - The new game "Valorant: Energy Action" is expected to generate over 300 million yuan in its first month [4]. - Companies such as Tencent, NetEase, and Giant Network are highlighted for their strong product performance and market presence [4][5].

Investment Rating - The report assigns an "Increase" rating for the gaming industry, indicating a positive outlook compared to the CSI 300 index, with expected growth exceeding 15% [13]. Core Insights - In September, a total of 145 domestic games received approval, contributing to a total of 1,195 domestic game licenses issued this year, significantly higher than the 959 licenses issued in the same period last year [6][8]. - The gaming market in August showed stability, with a total revenue of 29.263 billion yuan, reflecting a month-on-month growth of 0.61% but a year-on-year decline of 13.01% [6][8]. - The report highlights the strong performance of leading products, such as Tencent's "Delta Action," which reached 30 million daily active users in September, and the anticipated revenue of over 300 million yuan for the new game "Valorant: Energy Action" in its first month [6][8]. Summary by Sections Game License Approvals - In September, 145 domestic games and 11 imported games received approval, with notable titles from Tencent, NetEase, and others included in the list [6][8]. - The approval rate for domestic game licenses has increased, with an average monthly issuance of 132.8 licenses in 2023, up from 88.8 in 2021 and 108.8 in 2022 [6][8]. Market Performance - The gaming market's revenue for August was 29.263 billion yuan, with mobile games generating 21.521 billion yuan and client games 6.563 billion yuan [6][8]. - The report notes that client games are experiencing growth due to cross-platform products, which enhances their profitability compared to mobile games [6][8]. Investment Recommendations - The report recommends companies with strong content reserves and solid fundamentals, including Kain Network, 37 Interactive Entertainment, Giant Network, Perfect World, and others [6][8]. - Specific stock recommendations include Kain Network (28.94 yuan), 37 Interactive Entertainment (22.49 yuan), and Giant Network (44.87 yuan), all rated for "Increase" [7][8].