That followed reports that Beijing had removed a top regulator responsible for a crackdown on the sector.
Tencent stock gained around 1% by afternoon, with rival NetEase up by a similar amount.
That contrasts with a fall of around 1% for Hong Kong's benchmark Hang Seng Index.
Reuters sources say watchdog Feng Shixin was removed from his post last week.
He had overseen regulation of the country's vast gaming sector.
Five sources say his departure was linked to rules set out in December, which were meant to curb spending and the use of rewards to encourage game playing.
The measures sparked a plunge in related stocks, wiping nearly $80 billion off the value of China's top two gaming firms.
Days later, authorities struck a more conciliatory tone, saying they would study how to improve the proposals.
Now analysts say Feng's exit looks like a goodwill gesture to the sector.
However, there was no comment on the report from the Chinese government, and Reuters wasn't able to contact Feng for a response.
Beijing cracked down heavily on its gaming sector in 2021, setting strict playtime limits for under 18s.
The latest proposals revived concern over aggressive regulation, just when authorities had been trying to revive private sector investment in the country.
