China approves 163 domestic games in June as regulatory easing continues

The National Press and Publication Administration cleared 163 domestic online games and 8 imported titles in June, maintaining a monthly approval pace that signals Beijing's commitment to supporting the gaming sector after the 2021 crackdown.

China's gaming regulator approved 163 domestic titles and 8 imported games in June, extending a multiyear policy pivot that has restored regular license issuance after the 2021 crackdown froze the industry.

The National Press and Publication Administration published the June batch on June 30, according to the official announcement. The regulator has issued game licenses on a near-monthly basis since December 2023, when it resumed regular approvals after a prolonged freeze that had halted monetization of new titles.

The 163 domestic titles approved in June follow a pattern of elevated monthly batches, while the 8 imported games continue a gradual reopening to foreign publishers. The NPPA did not immediately disclose the full list of approved publishers or specific titles in its initial announcement.

The sustained approval pace matters because a predictable license pipeline reduces regulatory overhang for China's gaming industry, the world's largest by revenue. Tencent Holdings Ltd. and NetEase Inc., the two dominant publishers listed on the Hong Kong Stock Exchange, benefit directly from each new license as it enables monetization through in-app purchases and advertising.

The June batch marks the latest chapter in a regulatory reversal that began after Beijing imposed sweeping restrictions on the gaming sector in 2021. Those measures — including a freeze on new licenses, caps on playtime for minors, and tighter content rules — erased billions of dollars in market value from Chinese gaming stocks and forced developers to pivot toward overseas markets.

The resumption of regular license issuance in late 2023 signaled a fundamental shift in Beijing's approach to the sector. Since then, monthly domestic approvals have consistently exceeded 100 titles, providing developers with a stable pipeline for new game launches.

Tencent, the world's largest gaming company by revenue, relies on a steady flow of new titles to sustain its domestic portfolio, which includes blockbuster franchises such as Honor of Kings and PUBG Mobile. NetEase, its closest rival, similarly depends on regular license approvals to feed its lineup of mobile and PC games, including self-developed titles and licensed international properties.

The 8 imported games approved in June reflect Beijing's calibrated approach to foreign content. While the number remains modest relative to domestic approvals, the consistent monthly allocation of imported licenses provides a predictable framework for international publishers seeking access to China's gaming market.

The gaming sector's recovery from the 2021 regulatory shock has been one of the most significant policy reversals in China's technology industry. The Hang Seng Tech Index, which counts Tencent and NetEase among its largest constituents, has benefited from the improving regulatory environment, though the index remains sensitive to any signs of renewed regulatory tightening.

This article is for informational purposes only and does not constitute investment advice.