Pokemon Go relies on Google's mapping system, but the US tech giant's services have been blocked in China since 2010.
China's top media regulator the State Administration of Press, Publication, Radio, Film and Television (SARFT) has also tightened its grip on mobile gaming since the start of July, requiring all mobile games to be submitted to the regulator for pre-approval at least 20 working days prior to launch.
In addition, foreign games developers have to license their software copyrights to Chinese online publishing license-holders.
"We expect Chinese game studios to start developing a similar type of game to take advantage of the buzz and hunger it has created among Chinese gamers recently," said Macquarie analysts.
City Pixies Go, a monster-hunt mobile game with a similar name as Pokemon Go in Chinese, has seen its download and grossing ranks soar from below 100 and below 300 at its launch in April, to currently No. 1 and top 50 in China. The app also uses location-based services and allows players to catch virtual monsters.
In the meantime, the Baidu Index of Pokemon Go, as a gauge of popularity by search queries in China, has surged to around 434,000, overtaking levels achieved by Tencent's popular mobile game Honor of Kings, Netease's mobile Fantasy Westward Journey, and other hit titles, according to data compiled by Macquarie. But despite the rises, Zhou Wei, a gaming sector columnist at Sina, said it's hard for copycat games to succeed in China in the longer term.