Tencent climbs as China approves 32 imported online games

SQUARE ENIX HOLDINGS

02/02/2024 07:23

** Shares of Chinese gaming giant Tencent  0700.HK  climb 
5.9% to HK$287.60, their highest since Jan 29, and set for a
second session of gains 
    ** Stock posts biggest intraday pct rise since July 25, and
is third-biggest pct gainer in the Hang Seng Tech Index
 .HSTECH 
    ** China approved licences for 32 imported online games for
2024, including titles to be published by Tencent and Nintendo
 7974.T 
    ** Mobile DnF from Tencent received approvals. We view this
as a positive surprise as this title is highly anticipated by
the market - Jefferies
    ** Meanwhile, Tencent halted development of a highly
anticipated mobile game based on Square Enix's  9684.T  "Nier"
franchise in December, according to three people with knowledge
of the matter 
    ** Tencent cancelled the project that had been in the works
for nearly two years in part because it struggled to find a
compelling monetisation model given the expensive development
costs and franchise rights
    ** The Hang Seng Tech Index  .HSTECH  slips 0.5%, while Hang
Seng Index  .HSI  adds 0.1%
    ** Tencent stock down 5.2% YTD 

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))