BEIJING: Tencent Holdings Ltd’s shares surged on Friday after a local regulatory official said some new video games had been cleared for sale, ending a lengthy freeze in approvals that has spooked players in the world’s largest gaming market. Feng Shixin, a senior official of the ruling Communist Party’s Propaganda department, said in a speech at a gaming conference in the southern city of Haikou that a first batch of approvals for games had been completed, according to a transcript of the speech and the organisers of the event.
That helped propel Tencent’s shares up by as much as 4.6 per cent, putting the gaming-to-social media giant on course for its steepest daily share price jump in over a month. China stopped approving new titles from March amid a regulatory overhaul triggered by growing criticism of video games for being violent and leading to myopia as well as addiction among young users. The freeze on new approvals has pressured gaming-related stocks and clouded the outlook for mobile games, rattling industry leader Tencent and peers like NetEase Inc.
“We hope through new system design and strong implementation we could guide game companies to better present mainstream values, strengthen a cultural sense of duty and mission, and better satisfy the public need for a better life,” Feng said. State media reported that regulators had set up an online video games ethics committee, raising hopes the government was preparing to resume an approval process that has been frozen for most of this year. — Reuters
Oman Observer is now on the WhatsApp channel. Click here
