(Yicai Global) Dec. 29 -- Shares of Tencent Holdings, the world’s largest video games developer, rose after the Pokémon Unite title it made with The Pokémon Company was included in China’s last batch of game licenses for this year.

Shenzhen-based Tencent [HKG: 0700] ended 2.4 percent higher in Hong Kong today at HKD334 (USD42.86) a share, extending a two-month rally to 66 percent. The benchmark Hang Seng Index dipped 0.8 percent.

Pokémon Unite was among the 44 foreign video games the National Press and Publication Administration yesterday approved for release in China. It was the first time this year that the media watchdog had granted licenses for imported games. Eighty-four games developed in the country were also awarded permits in this round.

Pokémon Unite, a free-to-play multiplayer online battle arena game, can be played on Nintendo Switch and mobile devices. It launched overseas in the third quarter of last year. TiMi Studio Group, the Tencent Games’ unit that developed it, is also the creator of Tencent’s popular MOBA for mobile devices Honor of Kings, the Chinese version of Arena of Valor.

Titles from other developers, including NetEase, Perfect World, and Shenzhen Zqgame, also secured licenses yesterday.

Shares of Zqgame [SHE: 300052] jumped 4.6 percent to close at CNY19.73 (USD2.83) in Shenzhen today. But NetEase [HKG: 9999] sank 3.2 percent to HKD110.90 (USD14.23), while Perfect World [SHE: 002624] fell 2.4 percent to CNY12.56.

The National Press and Publication Administration has licensed a total of 512 video games since it resumed issuing permits in April, down 32 percent on last year. Licensing was suspended for about eight months after China tightened oversight of the gaming sector in August last year. New rules cut the amount of time minors can spend online to three hours a week in an effort to curb video game addiction.

Stricter gaming regulation is inevitable, analyst Zhang Shule told Yicai Global, adding that it will not impact developers’ domestic market space as long as the granting of licenses continues. Tougher rules can also eliminate a great number of low-quality games, as happened previously, he said.

Editors: Dou Shicong, Futura Costaglione