Tencent shares jump over 3 percent due to game approval by regulators

INTERNATIONAL – Tencent Holdings’ shares rose more than 3 percent on Friday after Chinese regulators approved mobile games published by the firm for the first time since a freeze on new approvals was imposed in March amid increased scrutiny of the sector.

The State Administration of Press, Publication, Radio, Film and Television on Thursday approved 95 games in its fourth list since December, with two mobile games from Tencent and one from NetEase.

Shares of Tencent climbed as much as 3.1 percent by late Friday morning to HK$340.40 (R594,49).

Chinese regulators have approved two of Tencent’s mobile games for commercial launch, the first green lights for the firm in almost a year, though they are yet to make a keenly-awaited ruling on blockbuster PlayerUnknown’s Battlegrounds.

The Tencent games are Wood Joints and Folding Fan, both educational games that teach traditional Chinese architecture and craftsmanship.

Analysts and industry insiders say it is unlikely the two games can bring much revenue to Tencent, the world’s biggest game company and Asia’s biggest by market value, but the approval is still music to its ears, as the last time its games were approved was prior to March 2018.

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