Financial Update: 37 Interactive Entertainment Network Technology Group Co Ltd
On May 26, 2025, the Communication Services sector, particularly the Entertainment industry, witnessed significant activity. The Shenzhen Stock Exchange-listed 37 Interactive Entertainment Network Technology Group Co Ltd, a Chinese company specializing in mobile and web games, saw its shares rise by 2.63%. This increase is part of a broader trend in the media and entertainment sector, driven by the burgeoning IP economy.
Market Dynamics and Performance
The Media ETF (159805) led the sector with a 1.81% increase, while its associated index, the CSI Media (399971), rose by 1.88%. Key component stocks such as Qunliwanwei, Youzunetwork, and Giant Network also saw substantial gains, with Youzunetwork reaching a 9.97% increase. This surge is attributed to the strengthening of IP economy concept stocks, with Youzunetwork hitting a new high and other stocks like Iceberg Network and Shengtian Network rising over 10% and 5%, respectively.
Investment Opportunities and Analyst Insights
Analysts from Huajin Securities highlighted a record-breaking issuance of game licenses in May, suggesting a focus on high-quality content as a lucrative investment opportunity. They noted that Giant Network is expanding its reach through quality IPs and AI matrices, while Keai Network is poised for growth with its premium game reserves and AI+IP matrices. Meanwhile, Zheshang Securities pointed out that the issuance of domestic game licenses reached 130 in May, with 14 international licenses, reflecting a 17.8% absolute return over the past 12 months. This indicates a positive impact from policy support on the gaming sector.
Policy Support and Technological Advancements
The Media ETF (159805) saw a 1.08% rise, with its price reaching 1.12 yuan. Over the past month, the ETF has increased by 1.47%, ranking first among its peers. Recent policy measures by the Guangdong Provincial Party Committee’s Propaganda Department aim to boost the high-quality development of Guangdong’s network game industry. These measures include support for original game products, technological innovation, and the development of mini-program games.
Additionally, Tencent’s launch of the “Hunyuan Game” AI platform marks a significant technological advancement. This platform, built on the Hunyuan large model, is designed to revolutionize game asset generation and production processes using AI, enhancing both player satisfaction and designer efficiency.
Conclusion
The gaming industry, particularly in regions like Guangdong, is at a critical juncture, requiring new transformation directions and market growth. With continued policy support and technological innovations, companies like 37 Interactive Entertainment Network Technology Group Co Ltd are well-positioned to capitalize on these trends. Investors are advised to monitor AI applications and user feedback closely, as the media industry’s momentum continues to build.