Shares of Tencent Holdings (TCEHY) were rising sharply on Friday morning on news that the Chinese government had lifted its ban on the approval of new video games.
Tencent shares were rising 3.63% to $39.63 apiece on Friday morning.
The Chinese government, which had suspended new gaming approvals since March of this year, said Thursday it would approve the new suite of games Tencent wanted to release. Tencent has lost almost a quarter of its market value this year, largely due to the government's restrictions, which limited the growth of one of the Chinese internet giant's largest segments. Tencent's stock was flat between January and March, before tanking on the bad news.
China's initial ban was motivated by concerns about children becoming addicted to the games.
While video gaming revenue is important for Tencent, the company has diversified into other businesses. Gaming represented 59% of its revenue in the first quarter of 2015. That number steadily dropped to 32% by the third quarter of 2018, however, with Tencent growing revenues from its online advertising, social networks and other segments.
Recently, Tencent's WeChat, its massive messaging platform, partnered with TD Ameritrade to provide U.S. retail investors with an interactive platform for market information and education.