Core Viewpoint - The Chinese "ACG (Anime, Comic, Game)" gaming sector is experiencing a resurgence after a period of stagnation, with several major titles receiving approval or launching, marking a new industry peak similar to previous waves in 2015 and 2020 [1][2][5] Industry Trends - The current wave of ACG games is characterized by domestic developers no longer blindly following trends but instead focusing on developing their own intellectual properties (IPs) and integrating ACG elements with familiar game types, exploring niche markets [1][11] - The market is seeing a significant influx of new and established players, leading to a competitive environment that may result in a reshuffling of market positions [4][11] Game Launches and Performance - Notable game launches include "Victory Goddess: NIKKE," which achieved $1 billion in global revenue by January 2025, and "Pretty Derby," which returned after a 622-day hiatus, generating approximately $203 million in its first 12 days [2][3] - Other successful titles include "杖剑传说," which generated over 200 million yuan in its first month, and "最终幻想14：水晶世界," which began testing in June 2025 [3][4] Market Dynamics - The ACG gaming sector has experienced three major peaks over the past decade, with the current trend being driven by a more mature understanding of the market and player preferences [5][6] - Previous failures in the sector were often due to a lack of depth in storytelling and gameplay, leading to a "winner-takes-all" scenario where only a few titles succeeded [6][10] Cultural Shifts - The rise of "Guochao" (national trend) has allowed domestic developers to resonate more with local audiences, reducing cultural barriers and enhancing emotional connections with players [12][13] - The development of game-related merchandise is gaining traction, reflecting a shift in focus towards creating a broader ecosystem around ACG titles [12][13] Future Outlook - The current trend indicates a diversification of gameplay styles, with developers exploring various genres such as ARPG, shooting, and open-world games, which may lead to new market opportunities [11][12] - There is speculation about the potential for a "GTA-style" ACG game to emerge, with titles like "异环" and "无限大" being closely watched for their market impact [14][15][16]

Core Viewpoint - The Chinese "ACG (Anime, Comic, Game)" gaming sector is experiencing a resurgence after a period of stagnation, with several major titles receiving approval or launching, marking a new wave of industry excitement similar to past peaks in 2015 and 2020 [1][2][7] Industry Trends - The current wave of ACG games is characterized by a shift from blind imitation to the development of original IPs, with companies exploring niche markets and integrating ACG elements with familiar game genres [1][14] - The market is seeing a diverse range of game types, including card games, retro styles, and SLG, indicating a broader appeal to ACG players [14][15] New Entrants and Game Launches - A number of new and returning titles are launching, including "Victory Goddess: NIKKE," which achieved significant revenue shortly after its release [2][4] - Established titles like "Pretty Derby" are also making comebacks, with strong community engagement despite lower initial performance metrics [4][5] Major Upcoming Titles - Anticipated releases include Perfect World's "Yihuan," which has garnered over 300,000 pre-registrations, and Tencent's adaptation of the popular comic "Yiren Zhi Xia" [5][8] - The trend of exporting games to international markets before domestic launches is becoming more common, with titles like "Ruyuan" leading the way [15][17] Market Dynamics - The ACG gaming sector has experienced three major peaks over the past decade, with the current phase being distinct due to the focus on quality and innovation rather than mere replication of successful formulas [7][12] - The industry is witnessing a competitive landscape where both established and new players are vying for market share, potentially leading to a reshuffling of the market [6][9] Cultural Integration - The rise of "Guochao" (national trend) is influencing ACG games, allowing developers to connect more deeply with local audiences through culturally resonant themes [17][18] - The development of game-related merchandise is gaining traction, reflecting a growing recognition of the potential for additional revenue streams beyond the games themselves [17][18] Future Outlook - Analysts suggest that the likelihood of a breakout hit akin to "GTA" in the ACG space is low in the current competitive environment, as many developers focus on monetization rather than long-term product development [19][21] - The potential for independent PC games to emerge as significant players in the ACG market is noted, emphasizing the importance of narrative and emotional connection over gameplay mechanics [21][22]

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].

Core Insights - The recent rankings highlight the strong performance of the ACG (Anime, Comic, and Game) industry, with miHoYo recognized as the company creating the most wealth, followed by its significant valuation in the unicorn list [2][3] Group 1: Financial Performance - MiHoYo has been identified as the company with the highest number of wealth creators, with a valuation of 180 billion yuan, ranking sixth among China's top unicorns [2] - In June, miHoYo's "Genshin Impact" and Paper Games' "Love and Deep Space" topped the iOS sales chart, with estimated weekly revenues of approximately 774.1 million USD and 711.3 million USD respectively [3] - Paper Games' iOS monthly revenue is estimated at 245.1 million USD, showing a 37.15% month-on-month increase, while miHoYo's revenue is estimated at 185.9 million USD, driven by "Honkai: Star Rail" and "Genshin Impact" [3] Group 2: Market Trends - The success of "Genshin Impact" has established a competitive landscape in the open-world gaming sector, transforming it from a blue ocean to a red ocean [4] - Major gaming companies are actively engaging in the ACG market, with new releases and updates driving renewed interest [6] - The user base for the "pan-ACG" market is projected to reach 503 million by 2024, with market size expected to grow from nearly 300 billion yuan in 2019 to 597.7 billion yuan by 2024 [7][8] Group 3: Industry Developments - New titles such as "Silver City" and "Victory Goddess: New Hope" are being launched, with the latter achieving over 100 million downloads on its first day [6] - The "pan-ACG" market is expanding, with significant growth in related sectors such as merchandise and IP licensing, indicating a robust consumer willingness to spend [8] - The collaboration between game IPs and commercial brands has shown promising results, with events like "Ming Chao x Pizza Hut" selling out quickly [8]

Core Viewpoint - The Chinese gaming market continues to show strong growth, driven by new product launches and a shift from long-term product commercialization to new product contributions [3][4]. Domestic Market - In May 2025, the actual sales revenue of the Chinese gaming market reached 28.051 billion yuan, a year-on-year increase of 9.86% and a quarter-on-quarter increase of 2.56%. This growth rate has slowed compared to previous months but remains robust [3]. - The mobile gaming market in May 2025 generated actual sales revenue of 21.177 billion yuan, with a year-on-year growth of 11.96%. Key new releases have started to emerge, with several games achieving monthly revenues exceeding 10 million yuan [4]. - The client game market saw actual sales revenue of 5.819 billion yuan in May 2025, reflecting a year-on-year increase of 1.58%. The growth was primarily driven by new and recently launched products [5]. - The upcoming summer season is expected to see a significant increase in new game launches, with over 30 titles planned, covering various genres [6]. Overseas Market - In May 2025, the actual sales revenue of China's self-developed games in overseas markets reached 1.577 billion USD, marking a year-on-year increase of 6.93% and a quarter-on-quarter increase of 1.50% [8]. - Strategy games (SLG) remain the core category driving overseas revenue, with product structures continuously optimizing. Notably, the game "Kingshot" saw its revenue double compared to the previous month [8]. - New genres, including female-oriented and synthesis games, are emerging in the overseas market, contributing to revenue growth and diversification [8].

Group 1 - The gaming sector is experiencing a significant rise, with the gaming ETF (159869) increasing over 3% in early trading on June 24, 2023, led by stocks such as Glacier Network, which surged over 15% [1] - According to Gamma Data, the Chinese gaming market is projected to reach a scale of 28.051 billion yuan by May 2025, reflecting a year-on-year growth of 9.86% and a month-on-month growth of 2.56% [1] - The mobile gaming market in China reached a scale of 21.177 billion yuan in May 2023, showing a year-on-year increase of 11.96% and a month-on-month increase of 3.69% [1] Group 2 - The client game market in China recorded a scale of 5.819 billion yuan in May 2023, with a year-on-year growth of 1.58% and a month-on-month growth of 0.34% [1] - The actual sales revenue of self-developed games in overseas markets reached 1.577 billion USD in May 2023, marking a year-on-year increase of 6.93% and a month-on-month increase of 1.50% [1] - Jianghai Securities noted that the Chinese gaming market achieved positive growth both year-on-year and month-on-month in May, slightly exceeding expectations [1] Group 3 - The gaming sector is catalyzed by multiple factors including AI, content, and changes in commercialization models, presenting potential investment opportunities in the gaming ETF (159869) which tracks the performance of A-share listed companies in the animation and gaming industry [2]

Market Overview - The A-share market experienced a decline on Thursday, with the Shanghai Composite Index falling by 0.79%, the Shenzhen Component Index down by 1.21%, and the ChiNext Index decreasing by 1.36%. The total market turnover reached 12,808 billion yuan, an increase of 591 billion yuan compared to the previous day, with over 4,600 stocks declining across the market. Sectors such as oil and gas, short drama games, and the China Shipbuilding Industry Group saw gains, while nuclear fusion and weight loss drug sectors faced losses [2][6]. Important News - The Ministry of Commerce announced on June 19 that it is expediting the review of export license applications related to rare earths, emphasizing the importance of maintaining global supply chain stability and security. The ministry has approved a certain number of compliant applications and will continue to strengthen the approval process for compliance applications [3][7]. Industry Insights - The report highlights the launch of 14 key new mobile games in May 2025, with titles such as "杖剑传说" and "胜利女神：新的希望" performing notably well. The gaming industry is expected to benefit from a stable issuance of game licenses and a favorable market environment, suggesting a positive outlook for new game performances [12][14]. Investment Recommendations - The report suggests focusing on the deepening reforms of the Sci-Tech Innovation Board and the Growth Enterprise Market to enhance the institutional inclusiveness and adaptability for high-quality technology enterprises. The establishment of the "Sci-Tech Growth Layer" aims to support technology companies that are not yet profitable but have significant breakthroughs and commercial prospects. This initiative is seen as a crucial step in building a multi-tiered capital market system [8][11]. - The report emphasizes the importance of nurturing emerging and future industries, with a focus on high-level technological self-reliance. It suggests leveraging financial innovation tools and policies to support technology innovation and accelerate the growth of new industries [10][11].

Core Viewpoint - The gaming market in China is witnessing the return of two major titles, Tencent's "Victory Goddess: New Hope" and Bilibili's "Shining! Yujun Girl," both of which have shown unexpected market performance after their respective launches [1][22]. Group 1: Game Performance - "Shining! Yujun Girl" had a long development cycle of five years and was initially launched in Japan in February 2021, generating over 5.1 billion yuan in its first month and approximately 50 billion yuan in total revenue for the year [3][17]. - The game returned to the Chinese market on May 22, 2023, after nearly two years of absence, but its performance has been underwhelming, with only 203 million yuan in revenue over 12 days on iOS [6][12]. - "Victory Goddess: New Hope" generated 24 million yuan in revenue within its first 12 days, which is significantly lower than other major titles like "Dungeon and Fighter: Origin" [32][37]. Group 2: Market Dynamics - Both games faced challenges in their marketing strategies, with "Shining! Yujun Girl" opting for a low-profile re-launch that coincided with the release of "Victory Goddess," impacting its visibility and player engagement [16][37]. - The download trends for "Shining! Yujun Girl" showed a decline, with approximately 66,000 downloads over 12 days, indicating a lack of sustained interest [12][25]. - The competitive landscape in the Chinese mobile gaming market is intensifying, with players becoming more selective and demanding higher quality content, making it increasingly difficult for overseas titles to succeed upon their return [37][38]. Group 3: Future Outlook - The future success of "Shining! Yujun Girl" will depend on the developers' willingness to invest in marketing and content optimization to attract new and returning players [16][37]. - The performance of "Victory Goddess" is being closely monitored, as its initial results are considered average compared to expectations set by its overseas success [32][37]. - The overall trend suggests that the chances of overseas games succeeding in the Chinese market are diminishing, with local developers having a better chance of success with self-developed titles [37][38].

Group 1 - MiHoYo's recent crackdown on cheating in the game "Genshin Impact" highlights its commitment to maintaining a healthy gaming ecosystem and player experience, which is crucial for sustaining player engagement and willingness to spend [1] - The successful collaboration with the Shanghai police to dismantle a cheating operation demonstrates the effectiveness of MiHoYo's legal and technical measures in protecting its products [1] Group 2 - The mobile game "Goddess of Victory: Nikke" has faced issues with abnormal gift redemption, leading to an official apology and compensation to players, which may impact its market competitiveness [2] - The game's performance is critical for Tencent, as it competes with other titles like "Honkai: Star Rail" and "Blue Archive," and the company must work to regain player trust and stabilize revenue [2] Group 3 - Square Enix announced the release of "Dragon Quest 1 & 2 HD-2D Remake" on October 30, 2025, across all platforms, with a notable release on Switch 2 [3] - The success of previous remakes by Square Enix suggests that this title could become a significant revenue source, alleviating concerns about the company's reliance on the "Final Fantasy" series [3]

Group 1 - Tencent's new game "Under the Other" has started a beta test, indicating its entry into the competitive market of 2D games [1] - The Chinese 2D game market is expected to see a significant turning point by May 2025, with several new titles receiving approval from the National Press and Publication Administration [1] - The 2D game sector, which was once thriving, is now experiencing a downturn with a reduction in new game releases and ongoing service terminations [1][2] Group 2 - Major companies are adjusting their strategies in the 2D game market, with Tencent notably reducing its investments in this area [2] - The success of miHoYo's "Genshin Impact" has led to increased competition and investment in the 2D game sector, but Tencent's focus has shifted towards maintaining its core competitive games [2][3] - The demand for deeper gameplay and content updates is rising among players, which has posed challenges for existing games like "White Night: Aurora" [2][3] Group 3 - The market for "pan-2D" users in China is projected to grow from 354 million in 2019 to 570 million by 2029, indicating a strong potential for 2D game IPs [4] - The revenue from the pan-2D market is expected to increase significantly, from 298.3 billion yuan in 2019 to 834.4 billion yuan by 2029 [4] - The unique cultural appeal and user engagement of 2D games continue to attract major companies despite the current market challenges [4] Group 4 - Tencent's recent release "Victory Goddess: New Hope" has performed well, reaching the top of the iOS free charts and maintaining a position in the top 20 of the best-selling charts [5] - Tencent is focusing on a niche of "2D beautiful girls" combined with shooting games, which reflects its strengths in traffic generation and social retention [5] - The competitive landscape is shifting, with companies needing to balance visual appeal and innovative content to attract younger audiences [6] Group 5 - NetEase is restructuring its approach to 2D games, focusing on long-term operations of established IPs like "Onmyoji" while reducing investment in new projects [6] - The 2D game market is undergoing a new round of reshuffling, with established IP holders focusing on sustaining existing products while newcomers aim to disrupt the market with innovative gameplay [6] - The future success in the 2D game market will depend on companies' abilities to balance visual appeal with engaging content that resonates with Generation Z [6]