Citigroup in "The Big Banks" expects limited negative impact of Google's Project Genie on the Chinese gaming industry, reiterating a "Buy" rating for Tencent

AASTOCKS
2026.02.02 06:58

Citi released a report stating that Google's "Project Genie" (an AI that can generate virtual worlds), which was launched last Friday (30th), has caused selling pressure on U.S. gaming stocks, raising concerns about its potential impact on Chinese gaming companies.

However, Citi believes that the negative impact of this event on Chinese gaming companies is limited, as Chinese users are essentially unable to use it. Assuming "Project Genie" is potentially successful, it should have a positive significance for Tencent's (00700.HK) "Tencent Metaverse Model 1.5" and Tencent's mini-game ecosystem. This is because Chinese game developers or users may want to try similar virtual world creation experiences, and it is believed that WeChat's mini-game ecosystem will be the most relevant platform, as it integrates global gameplay, social interaction, and robust game distribution and sharing capabilities.

Citi reiterated its "Buy" rating on Tencent, with a target price of 783 yuan

Source: AASTOCKS The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
© 2026 Longbridge｜Disclaimer