Tencent And NetEase Stocks Bounce Back As Chinese Regulator Signals Eased Stance On Gaming
Portfolio Pulse from Benzinga Neuro
Shares of Tencent Holdings Ltd (OTC:TCEHY) and NetEase Inc (NASDAQ:NTES) rebounded after China's National Press and Publication Administration (NPPA) signaled a softer regulatory stance on gaming. Tencent's shares rose by 3% and NetEase's by 14% after the NPPA announced the approval of 105 new domestic online games, including titles from both companies. This comes after a draft regulation aimed at curbing in-game spending caused a sharp decline in gaming stocks. The NPPA's recent actions suggest continued support for the industry despite regulatory concerns.
December 27, 2023 | 4:50 am
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POSITIVE IMPACT
NetEase's shares surged by 14% after the NPPA's announcement, which included the approval of NetEase's game 'Firefly Assault', indicating a recovery from the previous regulatory-driven slump.
The approval of NetEase's new game by the NPPA is a direct positive development for the company, likely to boost investor confidence and contribute to the stock's short-term performance.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Tencent's stock experienced a 3% increase following the NPPA's indication of a softer stance on gaming regulations and the approval of new games, including Tencent's 'Counter War: Future'.
The positive regulatory news directly impacts Tencent's business prospects, as it suggests a more favorable environment for their gaming operations, which is a significant part of their revenue stream.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90