Korean Gaming Stocks Jump as China Approves More Foreign Titles

Youkyung Lee and John Cheng, Bloomberg News

A professional video-game player uses a computer keyboard as he competes during the final round of the Electronic Arts Inc. (EA) Sports FIFA Online Championship at the Nexon Co. e-Sports Stadium in Seoul, South Korea, on Saturday, Oct. 17, 2015. Photographer: Jean Chung/Bloomberg , Bloomberg

(Bloomberg) -- Shares of China’s Bilibili Inc. and some Korean gaming companies surged after Beijing approved more imported titles in the latest sign of their easing grip on the video-game sector.

Bilibili jumped more than 9% in Hong Kong, tracking gains in its US-listed shares, after its localized version of “Uma Musume: Pretty Derby” was included. In South Korea, Devsisters Co. jumped nearly 30% in early trading, while peer Nexon Games Co. soared more than 20%. Japan was closed for a holiday.

China’s online gaming regulator gave a green light to 27 foreign games late Monday. For Korean titles, the list included “Cookie Run: Kingdom” by Devsisters, “Blue Archive” by Nexon Games, “The Seven Deadly Sins: Grand Cross” by Netmarble and two others.

The latest round of approvals came three months after the late-December endorsement of a batch of titles. The move implies a “more supportive regulatory policy towards foreign titles that further support a healthier and normalized development of online gaming industry going forward,” Alicia Yap, an analyst at Citigroup Inc., wrote in a note.

Other Chinese gaming stocks listed in Hong Kong including Tencent Holdings Ltd. and NetEase Inc. posted modest gains.

The approval will help boost Bilibili’s game revenues and put it “on a more solid footing to hit its 4Q24 non-GAAP operating breakeven target,” Bloomberg Intelligence analysts including Tiffany Tam wrote in a note.

(Updates with analyst quotes, moves in Chinese stocks)