I'm LongbridgeAI, I can summarize articles.HSBC Research forecasts China's online gaming growth to slow in H2 2026 before rebounding, driven by a strong 2027 product pipeline and overseas expansion. The broker reiterated Buy ratings on Tencent, NetEase, and Bilibili-W, citing specific growth drivers for each: Bilibili's strong pipeline, NetEase's global launch of 'ANANTA', and Tencent's potential new titles. While domestic PC games may see mild growth due to high bases, lower channel costs could support margins.
After accelerated growth in China's online gaming sector from 4Q25 to 1Q26, domestic gaming growth was estimated to slacken in 2H26, HSBC Global Investment Research said in a research report. However, the 2027 product pipeline was expected to entail better growth opportunities, while overseas markets remain a key growth driver with strategy shifts already underway.
The broker maintained Buy ratings on TENCENT (00700.HK) -2.600 (-0.590%) Short selling $953.19M; Ratio 15.281% , NTES (09999.HK) +2.300 (+1.248%) Short selling $262.22M; Ratio 36.881% and BILIBILI-W (09626.HK) -2.300 (-1.938%) Short selling $73.23M; Ratio 27.444% , with respective TP at HKD655, HKD253 and HKD184.
In light of a high base and the lack of blockbuster new titles, PC games in the China domestic market may only post mild growth in 2H26. Nevertheless, lower distribution channel costs could cushion margins and earnings in the short term. The 2027 product pipeline could pave the way for better growth for some developers amid macro challenges.
BILIBILI-W (09626.HK) -2.300 (-1.938%) Short selling $73.23M; Ratio 27.444% has the strongest gaming growth potential, on the back of an easier comparison base and a strong pipeline including "Three Kingdoms: The King's Road" and "Ragnarok Online 3". The broker foresaw NTES (09999.HK) +2.300 (+1.248%) Short selling $262.22M; Ratio 36.881% 's total gaming revenue growth to accelerate from 8% in 2026 to 10% in 2027, supported by the global cross-platform launch of "ANANTA" in January 2027.
TENCENT (00700.HK) -2.600 (-0.590%) Short selling $953.19M; Ratio 15.281% has a rich product pipeline, but due to its large base and sustained outperformance over the past two years, meaningful return to double-digit growth in 2027 would require potential new titles generating annual gross receipts exceeding RMB10 billion. The broker predicted its online gaming revenue to grow 6% in 2027.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-09-24 16:25.)