(Yicai Global) May 23 -- Shares of Shenzhen Zqgame and other Chinese game developers jumped after their products were included in China's fifth batch of game licenses this year.

Zqgame [SHE: 300052] closed up 8.6 percent at CNY19.55 (USD2.77) today, after earlier surging by as much as 15.9 percent. The stocks of Hangzhou Electronic Soul Network Technology [SHA: 603258] and Kingnet Network [SHE: 002517] ended 2.4 percent and 2.3 percent higher at CNY45.72 and CNY15.80, respectively.

Two of Zqgame's titles, including Yi Xian: The Cultivation Card Game based on China's ancient Xianxia mythology, were among the 86 games approved by the National Press and Publication Administration yesterday. Electronic Soul and Kingnet each secured a license. Mainstream game developers Tencent Holdings, NetEase, and Bilibili also had their games approved.

The NPPA has issued 433 licenses so far this year, compared with a total of 468 last year. The regulator resumed licensing in April 2022 after an eight-month suspension following the introduction of new measures to control the addiction to online games among young children.

The first-quarter earnings reports of mainstream gaming companies also reflected the recovery trend. Tencent's revenue from the business rose 6 percent to CNY35.1 billion (USD5 billion) in the three months ended March 31 from a year earlier.

Game developers are expected to return to growth in this or the next quarter, Central China Securities said in a research note.

Editor: Futura Costaglione