China's Press and Publication Administration has given its approval to 105 new online games, showing its support for the industry after proposed restrictions caused significant losses for investors in major game makers. The Game Working Committee of China Music and Digital Association granted the approvals, which were seen as positive signals for the development and prosperity of the online game industry. Among the approved games were Tencent's "Counter War: Future" and NetEase's "Firefly Assault."

The initial draft guidelines for curbs on online gaming had a severe impact on the share prices of video game manufacturers such as Tencent and NetEase, leading to losses amounting to tens of billions of dollars. This market slump also dragged down the Chinese benchmarks. In response to the concerns raised, the administration released guidelines that banned online games from providing incentives for daily log-ins and purchases. Additionally, restrictions were imposed on the amount users can recharge, and warnings were mandated for "irrational consumption behavior."

On Friday, NetEase's shares on the Nasdaq dropped by 16.1%, while its Hong Kong-traded shares fell by 25%. Tencent's shares closed 12% lower, and Huya Inc., a smaller online game maker, experienced a 10.7% decline on the New York Stock Exchange. In total, these companies suffered losses amounting to tens of billions of dollars in market value. However, since the Hong Kong market was closed for the Christmas holiday on Monday, share prices in Shanghai remained flat.

The Press and Publication Administration revealed that in 2023 alone, it issued 1,075 game version numbers, with 977 of them being domestically produced and 98 imported. It also referred to the "2023 China Game Industry Report," which stated that the sales revenue of the domestic online games market had exceeded 300 billion yuan ($42 billion) in 2023, with a total of 668 million people playing these games. The Game Working Committee expressed its hope that member units would take advantage of this opportunity to release high-quality products, promote the industry's high-quality development, and contribute to cultural prosperity and the construction of a culturally powerful country.

Over the past few years, China has implemented various measures to regulate the online games sector. In 2021, regulators limited the amount of time children could spend on games to just three hours per week due to concerns about gaming addiction. Approvals for new video games were suspended for around eight months but resumed in April 2022 as the broader crackdown on the technology industry was eased.