It seems that the nightmare of Tencent games in China is coming to an end. China’s Internet giant, the world’s largest gaming company, rose more than 5 percent on Friday after a government official said the lengthy freeze on new game approvals was finally over. “Approvals for the first batch of matches have been completed and we are working on licensing,” Feng Shuxin, a senior official in the ruling Communist Party’s propaganda department, said at the Games Friday. The government has suspended licenses allowing companies to reap money from new online games earlier this year in China, the world’s largest gaming market. The amendment was attributed to a comprehensive reform of government agencies governing the industry, but also coincided with warnings from authorities about the violent content and addictive nature of some games. Tencent will check the ages of all its players. The suspension of the credit crunch wiped out billions of market value in Tencent (TCEHY) and led to a rare decline in profits in the second quarter. But winter may now be over for Tencent and other gaming companies that have been frozen on new licenses. Feng asked the industry to be patient as officials work by delaying requests and clarifying what the government expects. “Through the new system, we hope to guide game companies to provide the best values, to promote a cultural sense of duty and mission, and to better satisfy the public for a better life,” Feng said. Despite Friday’s jump, Tencent shares remain low at around 35% of their all-time highs in January. Shares in NetEase (NTES), a major Chinese games developer listed in New York, rose after hours of trading. Tencent Music stocks rise after the emergence of the stock market “For the Chinese gaming industry, this news is clearly exciting,” Tencent said in a statement. “We are confident that after obtaining license approvals, we will provide more excellent cultural work for the community and the public,” the statement said. Tencent did not answer questions about the games he owned in the preparation stage for approval. Earlier this year, they were still waiting to get licenses enabling them to start reaping money from some of their most popular portable games, such as “Battlefield PlayerUnknown.” Organizers also banned a game called “Monster Hunter: World” which was expecting big sales.
December 31, 2018