NetEase rallies after Citi highlights China approval of mobile game

Citi says the China’s gaming regulator, the National Press and Publication Administration, released the approval of the sixth domestic game batch in 2024, which consists of 92 mobile and 12 cross-platform games. Notable highlights in this batch include a social game Roco Kingdom for Tencent (TCEHY), mobile version approval of The Epic of Tia for NetEase (NTES), and three games approved for G-Bits, the analyst tells investors in a research note. The firm says the approval of 104 titles is slightly bigger than the 95 and 96 domestic games approved in Apr and May, respectively, and is relatively inline with the first half of 2024 average of 105 games approved. Citi believes its current expectation for 1,200-1,400 games being approved in 2024 remains on track, “further reassuring the normalization of games regulation and approval process.” Shares of NetEase are up 3%, or $3.01, to $96.05 in premarket trading.