MSCI Adds Shunrong Sanqi as a Constituent Stock of China A Index

Nov 30, 2015, 08:00 ET from 37Games

SHANGHAI, Nov. 30, 2015 /PRNewswire/ -- According to MSCI's review released in early November, Shunrong Sanqi (Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd.) (SZ: 002555) will be added to the China A Index, starting from November 30th, 2015. Becoming a constituent stock will bring more overseas investors' attention to Shunrong Sanqi, which will be very beneficial for its overseas expansion.

MSCI A Index is considered of great value by leading investors both in China and from overseas as a reference when building and managing portfolios. Shunrong Sanqi will be added due to its rapid growth in the past several years. According to its latest financial report, Shunrong Sanqi's net income increased by 10521.34% to 346 million RMB in the first three quarters of 2015. Full-year net income is expected to be more than 700 million RMB, which will be a 200% increase compared with that of last year.

Shunrong Sanqi may be a dark horse in the stock market, but this company has long been a leading force in the Chinese domestic game market. The game giant is now planning to establish an international interactive entertainment empire and 37Games, a subsidiary of Shunrong Sanqi, is its main force. Established markets of 37Games include Korea, Thailand, France, Germany, most English speaking countries and some Arab countries. 37Games also works closely with embassies and consulates of countries like Canada, Britain and the Netherlands to enhance communication between China and those countries in fields such as games and comics. 37Games has already exported more than 70 games to the global market. Besides exporting its own products, what 37Games attaches more importance to is its cultivation of local developers and publishers through direct investment, acquisition or partnership.

Recently, 37Games enacted its globalization plan called Rising Dragon, which involves investing over $100 million in outstanding start-up game studios all across the globe within the next 5 years. In accordance with this plan, the company has been acquiring famous intellectual properties for the past few years. It is evident that 37Games is trying to provide more games that bear the cultural imprints of China and are suitable for overseas audiences.

37Games is very ambitious. When asked about 37Games's future, the company's founder and President Mr. Li Yi Fei said, "We are expecting to have a similar or even higher total revenue in our overseas markets than that in the domestic Chinese market before the year 2017." As more eyes focus on the company's addition to the China A Index, we will have to wait and see if the company can make a good use of the opportunity.

SOURCE 37Games