Positive news has emerged across capital markets, technology implementation and new product launches, collectively pointing to a broader industry rebound. First, Chinese A-share gaming stocks hit limit-up for two consecutive trading days. Then, a domestic game became the first in China to adopt NVIDIA’s latest DLSS 5 technology. Today also marks the open beta of a new title from a classic wuxia IP. Together, these three developments have gotten the Q4 gaming market off to a solid start.
Between October 13 and 14, the gaming sector saw a sudden rally: Dihun Network scored two straight daily limit-ups, while Fuchun Shares and Kaisa Culture also hit limit-up. Investors in stock discussion forums were widely debating whether gaming stocks were set for another upswing. The drivers behind the surge are straightforward: the steady rollout of game licence approvals in September provided reassurance to the market; NVIDIA DLSS 5 fueled optimism around the potential of AI rendering; and many companies forecast earnings growth in their Q3 reports. The combination of these three catalysts ignited market sentiment across the sector. Put simply, gaming stocks had been undervalued for an extended period. With policy support, technological progress and earnings fundamentals now in place, a valuation recovery was only natural.
More tangible than stock gains is the real-world application of advanced technology in domestic games. NetEase announced a few days ago that Where Winds Meet will add DLSS 5 support next month, making it the first Chinese game to feature the technology. Previously, cutting-edge rendering tech of this kind was almost exclusively debuting in overseas AAA blockbusters, and domestic titles were considered lucky just to keep pace. Securing a “first-launch” status this time around came as a pleasant surprise. The developer claims the technology will double rendering speeds, and paired with the new Qingzhou region map, should deliver a noticeable upgrade to both visuals and smoothness. This is more than just an upgrade for a single game — it signals that AI technology is moving from an industry buzzword into actual game development pipelines. Going forward, Chinese developers will have a solid competitive edge when competing on graphics quality and performance.
On October 15, Seasun’s JX World 4: Infinite officially entered open beta. Billed as the closing chapter of the JX World series, the title had already surpassed 10 million pre-registrations ahead of launch and has maintained strong buzz. For many veteran players, the JX series was their introduction to wuxia gaming, and two decades of IP nostalgia gives it undeniable pulling power. This release’s flagship “reduced-grind” progression design also hits home for many players: they can keep up with the community without grinding through daily tasks every day, blazing a new trail for the wuxia MMO genre. The developer is also giving away 500,000 yuan in cash red packets during the open beta, a clear sign of how highly Seasun values this concluding installment.
These three developments map neatly onto three core dimensions of the industry: capital, technology and content. Rising stock prices reflect returning market confidence in the sector; technological breakthroughs signal growing R&D capabilities; and the popularity of new releases demonstrates sustained momentum on the content supply side. Coupled with Tencent’s recent stepped-up overseas investments and increasingly standardized industry copyright protection, the broader upward trend for the sector is hard to miss. How long this heat will last ultimately depends on the quality of the products themselves — at the end of the day, players will always vote with their wallets for games that are actually fun to play.
*Data aggregation is sourced from Gghubs.