On March 17, online game concept stocks rose sharply, G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Shanghai Yaoji Technology Co.Ltd(002605) , Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Perfect World Co.Ltd(002624) and other four stocks rose by the limit, and the online game index rose by 5.51% at one time. The collective strength of related ETFs, Cathay Pacific China Securities animation game ETF, Huatai Bairui China Securities animation game ETF and Huaxia China Securities animation game ETF once rose by more than 6%. As of the press time of Chinese journalists from securities companies, it has dropped slightly.
On the news side, on the one hand, the income of head game going to sea in February was stable. On the other hand, there are market rumors again today that the game version number may be issued at the end of March and early April. It is reported that the latest batch of Chinese game edition numbers were issued in July 2021. Up to now, the edition numbers have been suspended for more than half a year.
game sections rose sharply
In the morning trading on March 17, online game concept stocks rose sharply. As of the midday closing, four stocks, including G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Shanghai Yaoji Technology Co.Ltd(002605) , Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Perfect World Co.Ltd(002624) and others, rose by the limit, and nearly 20 stocks in the sector rose by more than 5%.
The online game index rose by 5.51%, and related ETFs such as Guotai Zhongzheng animation game ETF, Huatai Bairui Zhongzheng animation game ETF and Huaxia Zhongzheng animation game ETF all rose by more than 6%.
Hong Kong stocks: Tencent holdings broke through HK $400 / share in early trading, Netease rose by more than 6%, BiliBili rose by more than 21%, heart company rose by more than 20% and China mobile game rose by more than 15%. As of the press release of the Chinese reporter of the securities company, the share prices of the above companies have fallen, but they are still rising
On the news side, on the one hand, the income of head game going to sea in February was stable. According to sensortower, among the top 100 publishers shortlisted in the global mobile app store and Google play revenue list in February, 36 are from China, an increase of two shortlisted manufacturers compared with the same period in 2021 and January 2022, with a revenue of about US $2 billion, accounting for 37.9% of the global revenue. Tencent games, Netease games and MIHA games continued to occupy the top 3 positions in the revenue list of global mobile game publishers Shenwan Hongyuan Group Co.Ltd(000166) 3 on March 17, the latest report said that the main growth of the game industry this year came from the sea business. The dividend of mobile Internet worldwide is still, and Chinese game manufacturers have global competitiveness.
On the other hand, there are market rumors again today that the game version number may be issued at the end of March and early April. Several institutions pointed out that the current valuation of game companies is at the bottom of history. For example, the version number is issued, the emotion is repaired, the flexibility is large, and the configuration value is prominent.
version No. will the cold winter end
“Game edition number” is the abbreviation of the approval number approved by the State Administration of press, publication, radio, film and television for relevant game publishing and operation, which is reviewed and issued by the State Administration of press, publication, radio, film and television. Generally speaking, it can be understood as the “birth certificate” of the game. If the version number is not obtained, the game cannot be officially launched and operated, and the developers will not be able to make a profit.
It is reported that the latest batch of Chinese game edition numbers were issued in July 2021. Up to now, the edition numbers have been suspended for more than half a year. Although the edition Department said that “it is still receiving the version number application of game companies normally”, indicating that the review is continuing, the market’s expectations for the game industry in the past six months are still pessimistic.
Version number distribution, source: Citic Securities Company Limited(600030)
It is worth noting that on November 16, 2021, some media reported that there were signs of loosening in the approval of domestic online game version numbers that had been suspended for three months, and the approval of game version numbers may be resumed in the near future. The market responded quickly that day, and game concept stocks rose collectively. However, the subsequent rumors did not land, and the market then turned pessimistic.
On March 10, another user posted on an investment trading platform, saying that recently, a version department visited a game company and planned to issue version numbers in April, with a number of about 30. The post also mentioned that online games will promote the anti addiction mode of adults and fix the number of card drawing times of games. In addition, the user also said that “it is planned to complete the review of all previously issued version numbers at the end of the year, and each version number needs to resubmit the game framework playing method”. Subsequently, the 21st Century Business Herald said that after the reporter verified the relevant person in charge of the game working committee, the opposite party confirmed to the reporter that the content of the post was untrue.
For the stricter examination and approval of game version numbers, Cathay Pacific Fund believes that, on the whole, the purpose of supervision such as examination and approval of game version numbers is to promote the improvement of China’s game quality, protect minors and do a good job in the “business card” of cultural output. It is not killing the game industry with a stick, but essentially paving the way for the overall long-term improvement of China’s game strength.
Looking forward to the future, the stricter version number audit will lead to the loss of production capacity on the supply side, accelerate the market clearing, and high-quality content will occupy a higher user market and market share. In addition, the contribution of minors to the flow of water is very low, which is basically the norm of the industry. The potential negative effects brought by the previous policies are gradually digested, and the response to external positive effects will be intensified in the future.
data show that at present, the valuation of online games has been at a historically low level
yuan universe brings new opportunities for the development of game industry
In addition, professional investors in the game section are also turning their attention to the exploration and excavation of the meta universe, believing that open world games may become the earliest commercialized field of the meta universe.
Xu Chengcheng, an ETF of Cathay Pacific China Securities animation game, said in an interview with a Chinese reporter of a securities firm that from the perspective of the feasibility of the implementation of metauniverse, open world games may become the earliest commercialized field. Recently, the valuation of A-share game sector has rebounded significantly under the catalysis of metauniverse. It is judged that the investment opportunities in the next stage in the field of metauniverse may be more focused on having the R & D and operation ability of open world games The head game company, whose quarterly performance continues to pick up and the valuation is still low, has a greater chance to win in the long run. With the prosperity of the universe, it is expected to usher in the overall development of the game.
Xu Chengcheng also pointed out that the concept of meta universe has recently exploded, but it needs technical support such as AI technology, blockchain technology, distributed system technology, interactive technology, such as AR and VR, Internet of things devices connected by all things, 5g technology, game content and so on. At present, many technologies are still immature. Some people believe that it is impossible to have a true sense of the universe game in the past 20 years. Metauniverse is a very interesting concept, but in the short term, it should still be in a stage of hype. If it has some technological breakthroughs in some fields, such as the technical field, it can have strong commercial value. When the technology has a breakthrough, the market will pay more attention to the actual completion of the concept of meta universe. Therefore, its completion continues to improve, and its commercial value should also be fully reflected in a long time in the future.
Recently, Nanfang Dongying asset management company, which issued Hong Kong’s first meta universe concept ETF, also said that meta universe is still in a very early stage of development because we are still limited by many software and hardware constraints. Some restrictions or become the pain points of the development of the meta universe, and there is still a long way to go to solve the problem. For example, software and hardware upgrades in data processing. In the long run, when the technical limitations of software and hardware are gradually broken through, the use scenario of meta universe will gradually extend to all aspects of life and work, forming a situation in which a hundred flowers bloom and generating a large number of investment opportunities.
