Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Thematic (Sector/Industry)

<ul>
<li>China announced game approval for the September batch. The number of games approved is higher than in 2023 and 2024.</li>
<li>The pace of China game approval is above its pre-tightening level of August 2020 to July 2021.</li>
<li>Of the companies that we are monitoring, none got approval.</li>
</ul>


China announced game approval for the September batch. The number of games approved is higher than in 2023 and 2024.
The pace of China game approval is above its pre-tightening level of August 2020 to July 2021.
Of the companies that we are monitoring, none got approval.


Tencent/Netease: Two Months Without Approvals Despite Second-Highest Count Since 2022

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
 <li>CMGE is an IP-centric mobile game publisher facing severe financial headwinds, evidenced by a steep decline in revenue, significant net losses, and a deeply negative growth track record over the past three years.</li>
 <li>The company's primary asset is its extensive portfolio of intellectual properties, most notably the 'Legend of Sword and Fairy' franchise. The ability to successfully monetize this and other IPs through new game launches is critical for a potential turnaround.</li>
 <li>Despite a deeply discounted valuation on a price-to-book basis, the investment case carries high uncertainty due to intense competition in the Chinese gaming market, a stringent regulatory environment, and the company's recent history of poor execution and cash burn.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  CMGE is an IP-centric mobile game publisher facing severe financial headwinds, evidenced by a steep decline in revenue, significant net losses, and a deeply negative growth track record over the past three years.
  The company's primary asset is its extensive portfolio of intellectual properties, most notably the 'Legend of Sword and Fairy' franchise. The ability to successfully monetize this and other IPs through new game launches is critical for a potential turnaround.
  Despite a deeply discounted valuation on a price-to-book basis, the investment case carries high uncertainty due to intense competition in the Chinese gaming market, a stringent regulatory environment, and the company's recent history of poor execution and cash burn.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: CMGE Technology (302 HK) - Aug 2026

<ul>
<li>China announced game approval for the August batch. The number of games approved remained at a higher level than in 2023 and 2024.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>None of the companies that we are monitoring got approval.</li>
</ul>


China announced game approval for the August batch. The number of games approved remained at a higher level than in 2023 and 2024.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
None of the companies that we are monitoring got approval.


Tencent/Netease: Zero Game Approval Despite New High in Approved Games

<ul>
<li>China announced game approval for the July batch. The number of games approved remained at a higher level than in 2023 and 2024.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>Of the companies that we are monitoring, Netease got 1 approval.</li>
</ul>


China announced game approval for the July batch. The number of games approved remained at a higher level than in 2023 and 2024.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
Of the companies that we are monitoring, Netease got 1 approval.


Tencent/Netease: One Game for NetEase as July Approvals Hit New High

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Although geographical tension and macro challenges are yet over, we believe most worst-case scenarios have been priced in.</li><li>Jun would be good timing to accumulate some defensive &amp; undervalued names over a 12-month horizon, as we expect sector sentiment will be moderately boosted by: 1) 2Q23E acceleration with low base; 2) upcoming strong drama &amp; game pipeline in summer holiday; 3) solid performance for 618 promotions;; and 4) potential positive economic incentives.</li><li>We prefer SFV&amp;LFV and game subsectors, for resilience on macro uncertainty, stable competition landscape, and better margin outlook with solid growth. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Although geographical tension and macro challenges are yet over, we believe most worst-case scenarios have been priced in.Jun would be good timing to accumulate some defensive &amp; undervalued names over a 12-month horizon, as we expect sector sentiment will be moderately boosted by: 1) 2Q23E acceleration with low base; 2) upcoming strong drama &amp; game pipeline in summer holiday; 3) solid performance for 618 promotions;; and 4) potential positive economic incentives.We prefer SFV&amp;LFV and game subsectors, for resilience on macro uncertainty, stable competition landscape, and better margin outlook with solid growth. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Entertainment – Embracing rich pipeline and sector mild re-rating

China

CMGE Technology Group Limited is an investment holding company primarily engaged in mobile game publishing, game development, and the licensing of intellectual property (IP). The company specializes in developing and publishing IP-based games, leveraging cultural IPs from animations, novels, and motion pictures, and notably holds the licensing rights to the "Legend of Sword and Fairy" IP. It was founded in 2009 and is headquartered in Shenzhen, People's Republic of China.

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CMGE Technology (302 HK)

Tencent/Netease: Two Months Without Approvals Despite Second-Highest Count Since 2022

NPPA released its September 2026 domestic game approval batch. None of the companies we track received approval despite the overall approval count...

Ke Yan, CFA, FRM

Primer: CMGE Technology (302 HK) - Aug 2026

CMGE is an IP-centric mobile game publisher facing severe financial headwinds, evidenced by a steep decline in revenue, significant net losses,...

αSK Primers

Tencent/Netease: Zero Game Approval Despite New High in Approved Games

NPPA released its August 2026 domestic game approval batch. None of the companies we track received approval despite overall monthly approval...

Ke Yan, CFA, FRM

Tencent/Netease: One Game for NetEase as July Approvals Hit New High

NPPA released its July 2026 domestic game approval batch, the largest of the year. Netease secured one game approved. We also discuss sector...

Ke Yan, CFA, FRM

China Entertainment – Embracing rich pipeline and sector mild re-rating

Although geographical tension and macro challenges are yet over, we believe most worst-case scenarios have been priced in.

CMB International

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