China Online Gaming Operators Heavily Subsidized

(Beijing) -- Online gaming in China is known to be a lucrative business, but it is also a sector heavily subsidized by the government, according to data compiled by Caixin from exchange filings.

Giant Interactive Group (NYSE:GA) booked 260 million yuan in net profit for the first quarter, with net profit margins as high as 65 percent. But the company still received 10 million yuan in government subsidies during that period.

Since 2009, Giant has received 156 million yuan in government subsidies.

Shanda Interactive Entertainment Ltd (NASDAQ:SNDA), China's largest Internet gaming operator, booked 313 million yuan in net profit the first quarter, of which 33.2 million yuan was government subsidies.