China approves 197 games in July, XD Inc's Ragnarok sequel included

China's National Press and Publication Administration licensed 197 online games in July, including XD Inc.'s "Ragnarok M: Eternal Love 2," as Beijing maintained its gradual reopening of the gaming sector after a three-year regulatory crackdown.

"Chinese mobile game publishers generated $2.06 billion in combined revenue in June, with 38 firms ranking among the global top 100," analysts at Chasing Securities said in a research note.

The July batch included 193 domestically developed titles and four imported games, according to the NPPA's official list. Among the imported approvals was "Aion: Classic," a mobile adaptation of NCsoft Corp.'s flagship massively multiplayer online role-playing game, co-developed with Shengqu Games and slated for a 2026 launch in China. XD Inc.'s "Ragnarok M: Eternal Love 2," a sequel to the mobile MMORPG based on Gravity Co.'s Ragnarok intellectual property, received approval for both PC and mobile platforms.

The latest approvals extend a trend of regulatory normalization that began in late 2022 after Beijing's sweeping crackdown erased more than $600 billion from the market value of Chinese gaming and technology companies. With monthly approvals now averaging more than 100 titles, the NPPA has created a stable policy environment that allows developers to plan multiyear release pipelines.

The July tally of 197 licenses marked the second consecutive month above 190 approvals, following June's 195 titles. Before the crackdown, monthly approvals averaged about 80 to 90 titles, according to historical NPPA data. The sustained pace suggests regulators have settled into a rhythm that balances industry growth with content oversight.

XD Inc. Gains a Pipeline Driver

For XD Inc., the approval of "Ragnarok M: Eternal Love 2" adds a proven franchise to its release calendar. The original "Ragnarok M: Eternal Love" generated significant revenue for the Shanghai-based publisher after its 2018 launch, and the sequel arrives as the company seeks to rebuild its growth trajectory. XD Inc. shares closed 1.6 percent lower at HK$42.15 on the day of the announcement, with short selling accounting for 17.7 percent of turnover, or HK$13.8 million.

Aion Mobile Targets 2026 China Debut

NCsoft's "Aion: Classic" mobile game, developed in partnership with Shengqu Games, received its foreign game license — a permit required for titles based on intellectual property owned by non-Chinese companies. The game was first disclosed during NCsoft's third-quarter 2025 earnings call, with Chief Financial Officer Hong Won-jun targeting a 2026 release in China. The approval positions NCsoft to tap China's mobile gaming market, which generated $45.2 billion in revenue in 2025, according to the Game Publishing Committee of the China Audio-Video and Digital Publishing Association.

The sustained approval pace benefits not only developers but also the broader Chinese technology ecosystem. Gaming license normalization removes a key overhang for Tencent Holdings Ltd. and NetEase Inc., the country's two largest game operators, which together account for more than 60 percent of domestic market revenue. For global investors, the reopening shows that Beijing is prioritizing industry stability over regulatory retrenchment — a shift that could support valuations across the Hang Seng Tech Index, which counts gaming and internet companies among its heaviest weights.

This article is for informational purposes only and does not constitute investment advice.