China regulator requests pause in new video game applications to clear backlog

BEIJING/SHANGHAI - China's top content regulator has asked local authorities to stop submitting requests to monetize new video games while it processes a backlog of applications built up after a lengthy pause last year, three people with knowledge of the matter have said. The General Administration of Press and Publications (GAPP) issued the notice this week, the people said, indicating the impact on gaming stocks of the nine-month hiatus could continue and dulling hopes raised by the recent resumption of approvals. The regulator's notice has not previously been reported. China stopped approving the monetization of new titles last March amid a regulatory body reshuffle triggered by growing criticism of games being violent and addictive, as well as concern over the increase in myopia among young people. Gaming firms such as Tencent -- China's most valuable listed company -- were able to continue filing applications, building up a backlog.