HK Stock Market Move | Most gaming stocks fell, with Kingsoft (03888) and Tencent (00700) both dropping more than 3%.

Most of the game stocks are on the decline. As of the deadline, Kingsoft (03888) fell 3.22% to 22.24 Hong Kong dollars; Tencent (00700) fell 3.07% to 489 Hong Kong dollars; Zengame (02660) fell 1.57% to 2.5 Hong Kong dollars. On the news front, recently, some content related to the "New Rules for Game Approval: Palace fighting, Official fighting, Chess Card games are not accepted" has been spreading on some online platforms, attracting wide attention from the market and industry. According to 21st Century Business Herald, a senior game industry practitioner in Shenzhen mentioned to reporters that the content currently circulating on the internet has been in effect since 2019, and there is no new regulatory changes in the gaming industry recently. The overall tone of the gaming industry is still positive and optimistic in the near term." In addition, CICC International expects Tencent's first quarter performance this year to be stable, with total revenue expected to grow by 10% year-on-year to 198.4 billion RMB, and non-IFRS net profit to grow by 9% year-on-year to 66.8 billion RMB, mainly driven by strong core games and marketing promotions, offset by AI investments. The bank stated that Tencent's core business continues to benefit from AI and maintains strong growth momentum. Although AI investments impact short-term profit margins, they also create short-term catalysts and can empower the core business in the long run.