In the report "Major Banks," Citigroup continues to list Tencent and NetEase as the top picks in the Chinese gaming market

Citi published a research report stating that the 2025 China Game Industry Annual Conference will be held in Shanghai in mid-month. At the event, the annual China Game Industry Report was released, pointing out that policy support, innovation, and evergreen games drive healthy growth in the domestic market, self-developed games expand into overseas markets, the application rate of generative AI increases, the digital economy empowers, effective measures for the protection of minors, and talent development trends all contribute to the continuous growth of China's game market this year.

Looking ahead to next year, Citi believes that the Chinese game market will achieve sustainable growth driven by the increase in generative AI interactive applications and the attraction of innovative gameplay. It reiterates Tencent (00700.HK), NetEase (09999.HK), and Century Huatong (002602.SZ) as the preferred stocks in the sector, all rated "Buy," with a target price of HKD 751 for Tencent and a target price of USD 161 for NetEase (NTES.US)