(Yicai Global) Aug. 2 -- Shares of Tencent Holdings and NetEase, the world’s biggest makers of video games, fell after they were excluded from the fourth batch of gaming licenses issued by China’s media watchdog this year.

Tencent [HKG: 0700] fell 1.5 percent to close at HKD295 (USD37.58) today, after earlier slipping by as much as 3.9 percent. NetEase [HKG: 9999] finished 3.4 percent lower at HKD139, partially walking back a 4.2 percent decline.

The National Press and Publication Administration yesterday issued 69 gaming licenses for titles from developers such as iDreamSky, Kingame, and Dazzle Interactive Network Technology. A total of 241 games have been given permits since China resumed game licensing in April. None has gone to Tencent or NetEase.

On July 21, the commerce ministry and 26 other government departments jointly released a document aimed at optimizing the licensing process, expanding the online game review pilot scheme, and innovating supervision during and after the process. The document’s publication boosted market confidence in the gaming sector.

Under the pilot program, local governments first review and approve titles, then report to the NPPA for confirmation. Sixteen games in the second batch of licenses issued on June 7 were approved this way. The scheme was introduced in Shanghai, Beijing, and big cities in Zhejiang and Hainan provinces.

Editor: Shi Yi, Futura Costaglione