Glonghui, September 27 | Guotai Junan Securities released a research report saying that on September 25, the State Administration of Press and Publication announced the approval information for domestic online games for September 2023. A total of 89 imported versions have been issued this time. A total of 757 game versions were distributed throughout the year, with a total of 699 and 58 versions made in China and imported, respectively. The total number of versions has far exceeded that of the whole of last year. Previously, the market was overly concerned about the lack of domestic versions in August. As domestic versions were issued as scheduled in September, the quantity and timing of issuance remained stable, and industry supply is expected to continue to recover once doubts about industry regulation have been eliminated. Guotai Junan believes that since the summer season, the industry has shown flexibility on the demand side. The supply side is expected to further accelerate the recovery of the market under successive approvals and product trends. In the second half of the year, key manufacturers are expected to be released from the revenue-profit ladder. Combined with the impact of the Hong Kong stock game sector, valuation is still at the center of history due to the impact of the market environment, and the improvement in industry sentiment and company performance will accelerate valuation recovery. The recommended targets are Tencent Holdings, NetEase, Xindong, and Bilibili.