HK Stock Market Move | Game stocks generally rise, Apple lowering App Store commission rates may create a demonstration effect and help domestic developers increase profit margins.

The game stocks generally rose, as of the time of this report, LINEKONG (08267) rose by 7.94% to 0.34 Hong Kong dollars; BOYAA (00434) rose by 5.41% to 3.12 Hong Kong dollars; BILIBILI-W (09626) rose by 3.55% to 210.2 Hong Kong dollars; XD INC (02400) rose by 3.06% to 74.2 Hong Kong dollars; NetEase-W (09999) rose by 1.39% to 185.3 Hong Kong dollars; Tencent (00700) rose by 0.36% to 560.5 Hong Kong dollars. In terms of news, a recent report from Goldman Sachs pointed out that Apple announced last week a reduction in the commission rate of the China mainland App Store; while Google also announced in early March that the commission rate for in-app purchases on the Google Play Store will be reduced from 30% to 20% or lower, and will open up third-party payments, allowing developers to use billing systems other than Google's own. Goldman Sachs believes that the reduction in commission rates by the two companies will reduce the channel costs for mobile game developers/publishers, help expand their profits, and save costs to increase research and development investments, providing a longer development cycle for start-ups/small businesses and driving the development of the entire industry, nurturing more innovative products. Goldman Sachs also noted that Google Play Store's actions may pave the way for domestic companies to expand overseas. More importantly, Apple's actions may have a demonstration effect and become an important bargaining chip for game developers to pressure domestic Android channels and urge them to make similar reforms. If domestic Android channels follow Apple in reducing commission rates, there is still room for further improvement in the profitability of game publishers/developers.