Following the resumption of domestic games approval process three months ago, China's State Administration of Press, Publication, Radio, Film and Television (SAPPRFT) has recently resumed approval of imported games after a 14-month freeze. The approval of both domestic games and imported games are anticipated to ease investors’ concern on the gaming industry. Moreover, with more core games entering the Chinese market, China’s gaming companies are expected to gain a significant boost on their channels to monetize. The leading company of the industry can gain a larger portion of overall market share amid the consolidation phase of the gaming industry. Furthermore, Cloud technology is expected to be a prime factor driving the future market growth and lead to a reformation of the gaming industry. Investors are recommended to accumulate large gaming companies for medium/long term investment.

Bloomberg, SAPPRFT

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