Tencent's 2025 game revenue grew 22% year-over-year, focus on Games ETF (159869) low-position layout window

SadMoneyMeow · 2026-03-19T06:01:35+00:00

On March 19, the gaming sector experienced volatility and declined, with the Gaming ETF (159869) dropping nearly 2.5%. Despite weak performance from certain individual stocks, Tencent Holdings released its financial report showing gaming business revenue reached 241.6 billion yuan, representing a 22% year-over-year increase that exceeded expectations and boosted market confidence. With overall growth remaining scarce, AI and overseas markets are driving improvements in profitability quality, and the gaming sector is receiving multiple positive catalysts. Investors may consider paying attention to investment opportunities in the gaming track.

SadMoneyMeow

2026-03-19 06:01:35

Abstract generation in progress

On the morning of March 19, the gaming sector continued to fluctuate at low levels. The Gaming ETF (159869) has fallen to around 2.5%. Most holdings declined, with names like Mingchen Health, Giant Network, 37 Interactive Entertainment, Glacier Network, Perfect World, and Aofei Entertainment leading the declines. Only Shunwang Technology and Zheshu Cultural moved against the trend and rose. Recently, the gaming sector has been actively opening low-position entry channels. The Gaming ETF (159869) saw a net capital inflow of 87.94 million yuan yesterday, indicating strong investor interest.

On March 18, Tencent Holdings released its Q4 and full-year 2025 financial reports. As a core business, gaming maintained steady growth, with annual gaming revenue reaching 241.6 billion yuan, a 22% year-over-year increase. Of this, domestic market gaming revenue grew 18% year-over-year to 164.2 billion yuan. International gaming revenue exceeded $10 billion for the first time, a 33% increase year-over-year, setting a new record.

This unexpected growth in gaming significantly supports Tencent’s performance in the capital markets, with multiple positive signals clearly emerging. First, growth certainty is reinforced: the 22% overall growth rate is rare in industry stock competition, validating the “Long-term + Overseas + AI” strategy, easing market concerns about growth peaking. Second, profit quality is improving: gaming’s high gross margin characteristics, combined with overseas growth and efficiency improvements, have driven overall gross margin upward. Coupled with ample free cash flow, this provides strong support for shareholder returns, R&D investment, and strategic acquisitions.

The gaming sector is driven by multiple catalysts, including AI, content, and business model transformation. The Gaming ETF (159869), which tracks the CSI Gaming Index, leads the market in AI application content, accurately reflecting the overall performance of the A-share animation and gaming industry. Currently, the gaming sector is experiencing a policy boost, product cycle, and AI empowerment, creating a hot wave of multiple catalysts, potentially offering a window for strategic positioning in the gaming track.

Daily Economic News

(Edited by: He Chong)

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