[ET Net News Agency, 11 June 2018] Nomura cited several Chinese media reporting that
China's Ministry of Culture (MoC) has recently suspended the registration of new online
games. The MoC did not give any official explanation for the abrupt move, leaving room for
various speculations and also stirring up concerns in the online game and investor
community.
The research house checked with two independent sources and both confirmed that the
suspension was due to the reorganisation of the regulatory authorities that was initiated
by China's Lianghui (NPC and CPPCC) this March. Nomura was told by the sources that the
registration could resume by early July.
Nomura said this event should have little impact on online gaming companies - i.e.
Tencent (00700), NetEase and Kingsoft (03888) - as these big online gaming companies
usually obtain approvals from authorities in advance for their new games to be released in
the next few months. (KL)