No Level-Up for Chinese Game Companies Yet

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Heard on the Street: Reports of a full stop on game approvals in China—later corrected—punished shares. It still looks early to buy the dip.

new-game approvals were frozen

for nine months, was looming. Tencent’s shares almost halved from peak to trough that year. All online games need regulators’ approval to make money in China. And the number of game approvals a month still hasn’t returned to the level before the 2018 freeze. The real situation appears to be less dire than initially reported, however. New online-game approvals will be only temporarily on hold until companies upgrade systems to comply with Beijing’s new requirements, according to people familiar with the matter. The South China Morning Post later corrected its initial story. Shares of Tencent and Netease rebounded Friday.Blockbuster

games like Tencent’s “Honor of Kings” will continue minting money. Many games set to launch have already been approved. Game companies are eager to do whatever regulators require. Tencent says it has requested that more than 20 online platforms stop renting or selling game accounts in response to a state television exposé saying those accounts could be used to circumvent restrictions. The company also responded to a viral rumor saying that a 60-year-old was apparently playing its game at 3 a.m.—and doing suspiciously well—not normal grandmother behavior.

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George 'Nazi' Soros is trying to crash the Chinese economy just like he's done so many others.

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