Market Overview - On July 23, both the Hong Kong Hang Seng Index and the A-share Shanghai Composite Index rose, with the former stabilizing above 25,500 points, reaching a new high since November 2021, while the latter touched the critical 3,600 points [2] - The gaming sector in Hong Kong saw significant capital inflow, rising by 4%, with Tencent (00700.HK) being the largest contributor, increasing by 4.94% to HKD 552.0 per share, marking a new high since June 2021 [2][3] Company Performance - Tencent's stock performance was notable, with a significant increase in market capitalization, while other gaming stocks like Kingsoft (03888.HK), NetEase (09999.HK), Bilibili (09626.HK), and Xindong Company (02400.HK) also saw gains of 3.89%, 2.59%, 2.33%, and 1.56% respectively [2][3] - Flying Fish Technology (01022.HK) experienced the highest single-day increase of 49.15% following a profit announcement, projecting a net profit of approximately RMB 55 million to 70 million for the first half of 2025, compared to a loss of RMB 2 million in the same period last year [3][7] A-share Market - In the A-share market, the gaming sector also performed well, with ST Huatuo (002602.SZ) rising by 4.22%, and other companies like Gigabit (603444.SH) and 37 Interactive Entertainment (002555.SZ) also recording gains [4] Regulatory Environment - The National Press and Publication Administration approved 127 domestic games and 7 imported games in July, contributing to the positive sentiment in the gaming sector [5] - Notable approvals included Tencent's "Summon Adventure" and NetEase's "Diablo IV," indicating a steady release of new content in the market [5] Industry Trends - Analysts noted a solidifying trend of regular game approvals, coupled with domestic gaming innovations, suggesting a recovery in the industry's growth pace [6] - The summer season is a critical period for game developers, with many launching new titles aimed at enhancing player engagement through strong narratives and social elements [6] Financial Outlook - Market expectations for Tencent's Q2 2025 revenue and gross profit are optimistic, with projected year-on-year growth of 12% and 17% respectively, driven by an 18% increase in online gaming revenue [7] - HSBC forecasts NetEase's Q2 performance to be stable, with an expected revenue growth of 11%, supported by a significant increase in PC game revenue [8] - Analysts express a positive outlook for the gaming sector, citing improvements in supply and the emergence of quality content, alongside the impact of AI technology on cost reduction and efficiency [8]

Core Insights - The National Press and Publication Administration announced the approval of 134 game licenses in July, consisting of 127 domestic and 7 imported games, maintaining a high issuance level [1] Group 1: Game License Approvals - A total of 134 game licenses were issued in July, including 127 domestic and 7 imported games [1] - The cumulative number of game licenses issued this year has reached 946, with 884 being domestic, showing significant year-on-year growth [6] - The issuance of game licenses has returned to a normalized state, supporting the development of the gaming industry [6] Group 2: Notable Games and Companies - Major companies such as Tencent, NetEase, 37 Interactive Entertainment, Giant Network, and others have successfully obtained licenses for various games [2][3] - Notable games include NetEase's "Diablo IV" and "Marvel's Midnight Suns," which are highly anticipated by players [3] - Tencent's "Ultimate Showdown" has also received a license, with player reservations now open [5] Group 3: Market Trends - In the first half of the year, a total of 757 domestic game licenses were issued, representing over a 20% increase compared to the same period in 2024 [5] - The focus on game quality and social responsibility in content is expected to accelerate the introduction of high-quality games [6]