By Yifan Wang

Shares of Bilibili Inc. and other Chinese game developers and livestreamers soared in Hong Kong on Wednesday morning as investors welcomed Chinese regulators' approval of dozens of new game licenses.

Bilibili's Hong Kong-listed stock jumped as much as 14% by noon, while Kuaishou Technology, which offers game-related livestreaming and video content, was up 5.7%. Videogame giants Tencent Holdings Ltd. and NetEase Inc. climbed 3.2% and 3.5%, respectively.

While none of the four companies' own games were approved in the latest batch of licenses, analysts say the move is still providing a major boost to sentiment, signalling continued regulatory normalization after months of halted approvals.

The licenses given to 60 titles on Tuesday marked the second batch of new-game approvals in China after authorities suspended the process in August 2021.

Citi analysts said in a research note that the increase in the latest round of approvals--60 game titles versus 45 previously--made them more confident that the pace of approvals will normalize going forward.

The latest batch's inclusion of games developed by more established studios could also signal that Tencent and NetEase titles will be approved in future rounds, the Citi analysts said.

"We believe this could indicate further supportive policy measures for China's internet sector," they added.


Write to Yifan Wang at yifan.wang@wsj.com


(END) Dow Jones Newswires

06-07-22 2319ET