1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:The Hongkong and Shanghai Banking Corporation Limited,Singapore Branch View HSBC Global Investment Research

2、at:https:/ Find out moreHSBC12th Annual China ConferenceShenzhen|1-2 September 2025 Cross-platform titles to sustain PC growth and gamers turning to companies proprietary channels to top up spending Tencent best positioned for growing shooting-game popularity Maintain Buy on Tencent,NetEase,Bilibili

3、 We explore three emerging trends in Chinese online games in this note:1)PC growth solid;payment top-up channels gaining traction:After the global success of Wukong,Chinas first mega PC game hit,theres been steady growth in PC games driven by strong performances of cross-platform titles,such as Delt

4、a Force.The robust pipeline can sustain more growth,in our view.Meanwhile,efforts to get users to top up their wallets for spending on mobile games via proprietary platforms(e.g.QQ,Weixin)and company websites thereby avoiding iOS and Android channels has reached c40%-50%of total mobile game grossing

5、(HSBCe).We expect this to continue,though we note:1)traditional app stores still offer better and wider reach to new users;2)if traditional app stores dial back their fees,gaming companies would have less incentive to diversify to alternative top-up channels.Our sensitivity analysis suggests Tencent

6、 and NetEase can see low-to mid-single-digit percentage of OP upside if there are further channel cost optimization.2)Shooting games on the rise:Shooting games account for 30%of global lifetime grossing on the PC gaming platform STEAM.However,in China,only 15%of 1H25 China mobile game grossing was f