Futu News reported on March 21 that 27 games were approved, and mobile game stocks continued to rise after the opening of the market. As of press release, $BILIBILI-W (09626.HK)$An increase of nearly 8%,$FRIENDTIMES (06820.HK)$An increase of more than 4%,$XD INC (02400.HK)$An increase of more than 2%,$KINGSOFT (03888.HK)$,$ZENGAME (02660.HK)$Follow the trend.

According to the news, after the market closed yesterday, the National Press and Publication Administration released approval information for imported online games in 2023. A total of 27 games were approved. Well-known game companies such as Tencent, NetEase, and Bilibili all made gains. Specific product aspects include the Tencent game “Manor Synthesis”, “Legend of Seven: Battle of Light and Darkness”, the NetEase game “Dance Company: National Party”, and the Bilibili game “Shine! There are many key products such as “The Handsome Girl” (“Jockey Girl” national uniform), Shindong Network's “Painted World”, Dream World's “Mecha Team”, and Youxing Network's “Blue Files”.

On the institutional side, Guolian Securities believes that the resumption of normalized distribution of version numbers will help the game market recover. The resumption of normalized distribution of versions has brought strong confidence to the market, favoring the restoration of valuations in the overall sector, and the boom in the game industry continues to pick up.Since the release resumed in April 2022, the quantity and quality of new games launched is also expected to increase. It is recommended to focus on leading companies with rich version reserves, strong R&D capabilities, and high-quality products.

CICC believes that with the implementation and improvement of the protection of underage adults, the game industry is becoming healthy, standardized, and boutique on the supply side under policy guidance, and has basically entered a stage of healthy and steady development. It is expected that it will benefit from the normalization of version numbers to welcome the new year during the year. On the demand side, domestic game flow is more correlated with the ability of leading players to pay, or may benefit from economic recovery. The medium- to long-term dimension is expected to achieve breakthroughs and applications in VR/AR, AI technology, game engines, etc., and achieve high-quality development of the game industry.

Furthermore, the chatbot program developed by OpenAI in the US recently became popular, making artificial intelligence once again a hot topic in the capital market. CITIC Construction Investment said that the game industry is naturally adaptable to AIGC (which refers to the use of artificial intelligence technology to generate content), which is expected to bring about a new round of explosion in the game industry. The game industry will also have a transformative impact. It stated: First, AIGC will reduce production costs, improve quality, improve efficiency, and break the impossible triangle of “quality, efficiency, and cost” in the game industry; secondly, it will create new gameplay and experiences, and AIGC is expected to bring about a transformational improvement in content quality; again, AIGC is expected to make the supply of boutique games grow dramatically.

edit/ruby