HU-NTES@EC2612A

HANG YICK HLDGS

LINK HOLDINGS

EDA GROUP HLDGS

HING LEE (HK)

GLOBALSTRAT

CH FRONTIER TEC

HAO BAI INTL

TSE SUI LUEN

KIN SHING HLDGS

NTES

TCTZF

00700

TCEHY

09999

09899

Under China's unique game licensing system, AI is not a disruptor to existing major operators but an amplifier of their competitive advantages. Licensing barriers block the impact of massive new games, allowing large companies to steadily enjoy the huge benefits of AI in cost reduction, efficiency improvement, and revitalizing existing user bases. JPMorgan believes the recent valuation compression experienced by companies like Tencent and NetEase is a market misjudgment

- Morgan Stanley asserts that the recent valuation decline of major Chinese gaming operators like Tencent and NetEase reflects a misunderstanding of AI's impact within China's unique regulatory environment.  
- Unlike in open markets, China's strict licensing system limits new game approvals, making AI a tool that amplifies existing operators' advantages rather than disrupts them.  
- As the narrative shifts from viewing AI as a threat to recognizing its role in strengthening established companies, Tencent and NetEase could see significant valuation increases.

Wallstreetcn

NetEase

Tencent Holdings Limited

TENCENT

Tencent

NTES-S

NETEASE MUSIC

AI Disrupting China's Online Gaming? JPMorgan: Market Is Ignoring the Real Moat

517770

KWEB

ESPO

516010

JP Morgan's research report points out that although the market is concerned that artificial intelligence will disrupt China's online gaming industry, in reality, the application of AI will benefit large operators such as Tencent and Nio. The report believes that AI will help these companies update their game portfolios, integrate production processes, attract small creators, and enhance functions such as anti-cheating and player retention. JP Morgan has rated Tencent and Nio as "overweight," believing that the market's downgrade of these two companies is incorrect

AASTOCKS

AXA SPDB CSI Hugangshen Game and Culture Media ETF

Krne Csi China Internet

VanEck Video Gaming and eSport ETF

Guotai CSI Animation Game ETF

iShares China Large Cap

"Big Banks" JP Morgan: The game license system becomes a moat, Tencent and NetEase will become beneficiaries of AI

159695

CLOU

159998

DTCR

On April 7th, NetEase's one-stop enterprise service provider NetEase Zhiqi officially signed a strategic cooperation agreement with Agora, a provider of conversational AI and real-time audio and video cloud services. The two parties will engage in long-term in-depth cooperation in areas such as real-time audio and video, content security, and AI Agent, jointly providing enterprise clients with more comprehensive and secure one-stop intelligent solutions through product integration and ecological co-creation

36Kr

Harvest CNI Communication ETF

Global X Cloud Computing ETF

GF Fund CNI Communication ETF

Comm Servcies Select Sector SPDR

Tianhong CSI Computer Theme ETF

iShares Expanded Tech Software Sector ETF

iShares US Telecommunications

E Fund CSI Telecom Thematic ETF

Agora

Global X Data Center & Dgtl Infrs ETF

Guotai CSI All Share Communications Equipment ETF

ChinaAMC CSI 5G Communication ETF

SPDR S&P Software

NetEase Intelligent Enterprise and Agora will carry out long-term in-depth cooperation in areas such as real-time audio and video, AI Agent, and more

SRVR

IDGT

36Kr learned that on April 7th, NetEase Youdao officially announced the launch of its first AI knowledge base product, "Youdao Baoku." This product is positioned as an AI research assistant and thinking partner, focusing on deep understanding and structured reconstruction of knowledge. It can provide users with one-stop knowledge management, AI intelligent Q&A, and multimodal content generation services, filling the market gap for domestically adapted AI knowledge collaboration platforms

Pacer Data & Infrastructure Real Estate ETF

iShares US Digital Infrastructure and Real Estate ETF

Youdao

NetEase launches its first localized AI knowledge base "Youdao Treasure"

NETEASE MUSIC recently announced the full integration of OpenClaw and released a dedicated user tutorial, introducing the value of AI Agent in music interaction scenarios. The tutorial outlines various usage methods of the NETEASE MUSIC CLI, allowing developers to call standardized CLI through OpenClaw and personalize the assembly of core music service capabilities

NETEASE MUSIC releases exclusive usage tutorial for OpenClaw

The rapid development of AI technology has triggered anxiety among IT outsourcing companies, especially in countries like China, India, and the Philippines. There are rumors that NetEase will use AI for layoffs, although this has been denied, the industry response has been strong, with many companies forming "Lobster Project Teams" to replace repetitive work with AI. The stock prices of Indian IT outsourcing companies have fallen, and workers in the Philippines are facing the impact of AI. Experts warn that companies are turning to AI instead of human labor, which may exacerbate social inequality, calling for government policy intervention and skills training

- Recent rumors about NetEase planning to use AI to eliminate all outsourced employees have created industry-wide anxiety, despite official denials.  
- The rise of AI is affecting various sectors, with companies in China, India, and the Philippines facing significant impacts, including massive layoffs and increased unemployment risks, especially among women and entry-level workers.  
- Experts warn that the shift towards cheaper AI could exacerbate social inequality, urging government intervention through policy support and skill training to mitigate these effects.

Stheadline

AI replacement anxiety impacts IT outsourcing companies, with domestic enterprises setting up "Lobster Project Teams," making India and the Philippines major disaster zones

HERO

GAMR

GENZ

NetEase has recently shown signs of capital inflow, and the momentum of its stock price rebound is gradually becoming apparent. Further warming of market sentiment will help stimulate the increase in stock value, and investors need to pay attention to the interaction between capital flow and technical changes

Technical Forecast

VanEck Gaming ETF

Global X Video Games & Esports ETF

Wedbush ETFMG Video Game Tech ETF

VANECK DIGITAL NATIVE ECONOMY ETF

Morning Trend | NetEase's funds quietly flow back, is the rebound momentum starting to show?

YINN

36Kr learned that popular Chinese concept stocks showed mixed performance in pre-market trading in the US. As of the time of writing, Alibaba and JD fell over 1%, XPeng and Baidu fell nearly 1%, and NetEase fell 0.67%; Bilibili and Li Auto rose over 1%, iQIYI rose nearly 1%, and Tencent Music rose 0.42%

Tencent Music

Direxion FTSE China Bull 3X

KraneShares 2x Long BABA Daily ETF

KraneShares 2x Long JD Daily ETF

TME-SW

JD HEALTH

JD LOGISTICS

BABA 2x Long Daily ETF - GraniteShares

iQIYI

JD.com

XPeng

Bilibili

XPENG-W

BILIBILI-W

Baidu

JD-SW

Alibaba

BABA-W

BIDU-SW

Li Auto

LI AUTO-W

Popular Chinese concept stocks show mixed performance in pre-market trading, with JD falling over 1%

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NetEase has transformed into a global technology leader, embedding AI in its game development by 2026. The company focuses on high-quality proprietary IP, reducing reliance on third-party content. In FY 25, NetEase reported CNY 112.6 billion in revenue, with online games contributing 80%. The stock has risen 10.4% over the past year, with analysts projecting a 46.5% upside. However, risks include competition, regulatory uncertainty, and execution challenges in overseas studios.

- NetEase has transitioned from a gaming-centric firm to a diversified global technology leader, leveraging AI across its development pipeline in 2026.  
- The company reported approximately 112.6 billion Chinese Yuan in revenue for FY 25, with a net income of CNY 33.7bn, and continues to strengthen its portfolio through original franchises.  
- Despite facing risks such as competition and regulatory uncertainty, analysts maintain a positive outlook, with all 22 covering them rating the stock “Buy.”

marketscreener

ChinaAMC CSI Animation Game ETF

NetEase has a Winning Game Plan in Hand

NetEase-S (9999.HK) recent technical indicators show signs of adjustment. The death cross formed by the MACD serves as a short-term warning signal for investors, indicating potential for greater price volatility. Such market signals are typically interpreted as indicators of increased volatility, thereby raising risk warnings for speculative investments. Current market observations reflect that capital flow indicates a highly cautious state, lacking sufficient new capital inflow to support and stabilize prices. Combined with the day's capital flow and trading behavior, investors generally adopt a more cautious defensive strategy, resulting in no significant increase in trading volume. This, in turn, reinforces the short-term pessimistic sentiment in the market, with rational caution dominating. For NetEase-S, whether it can gain capital and emotional support in the near term will be key to its short-term market performance. In the absence of clear positive news in the current market, the short-term direction appears uncertain. The downward crossover of the 5-day and 10-day moving averages continues to suppress the rebound potential of the stock price, thus it is necessary to observe whether there will be marginal improvements in the next few trading days to determine the next investment strategy

- Recent technical indicators for NetEase-S (9999.HK) show signs of adjustment, with a bearish crossover in MACD signaling short-term volatility for investors.  
- Current capital flows indicate a highly cautious market state, lacking sufficient new capital to support and stabilize prices, leading to a defensive strategy among investors.  
- The absence of positive news and the downward crossover of the 5-day and 10-day moving averages suggests continued pressure on stock price recovery, necessitating observation of potential marginal improvements in upcoming trading days.

NetEase-S (9999.HK) technical indicators suggest an adjustment phase

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36Kr learned that recently, there were industry reports stating that Youdao, a subsidiary of NetEase, has launched internal testing for its first AI knowledge base product. It is understood that this AI knowledge base product is primarily aimed at students, professionals, and researchers. Its core function is to provide responses in seconds based on the organization of massive source files, with diverse output formats, and all answers can be traced back 100% to the original text

Guotai MSCI China A ESG General ETF

Yinhua MSCI China A ETF

Bosera CSI Global China Education Theme ETF(QDII)

Youdao, a subsidiary of NetEase, has launched internal testing for its first AI knowledge base product

01929

01024

09992

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On March 26, the three major Hong Kong stock indices collectively retreated, with the HSI closing down 1.89% and the Hang Seng Tech Index falling 3.28%. Market sentiment for taking profits at high levels was strong, with Kuaishou plunging over 14% and Pop Mart dropping more than 10%. The overall market trended toward caution amid macroeconomic external demand pressure and insufficient consumption momentum, with capital concentrating in energy leaders and certain stocks with unusual performance results

- On March 26, Hong Kong's major indices declined, with the Hang Seng Index closing at 24,856.43, down 1.89%.  
- Retail sectors like jewelry and toys struggled due to weak consumer demand, while tech stocks fell significantly, especially Kuaishou, which dropped 14.04%.  
- Investors are focused on economic data related to trade and monitoring the uncertain external environment and its impact on local consumption and risk appetite.

Market Heartbeat

CHOW TAI FOOK

KUAISHOU-W

POP MART

KINGSOFT

DELTON

LENOVO GROUP

LEAPMOTOR

XIAOMI-W

YOFC

CNOOC

CHINA LIFE

SMIC

Hong Kong Stocks Close | HSI Falls 1.89% as Kuaishou and Pop Mart Plunge

BILI

36Kr learned that popular Chinese concept stocks collectively strengthened in pre-market trading of US stocks. As of the time of writing, Alibaba, JD.com, PDD, and Nio rose over 3%, iQIYI rose over 2%, Baidu and Bilibili rose over 1%, Li Auto rose 0.96%, NetEase rose 0.22%, and XPeng fell nearly 2%

Global X E-commerce ETF

GraniteShares 2x Long PDD Daily ETF

Global X Autonomous & Electric V

NIO Inc

NIO-SW

Popular Chinese concept stocks in the U.S. pre-market collectively strengthened, with Alibaba rising over 3%

China's gaming regulator: grants license for 130 domestic online games in March

China's gaming regulator: grants license for 130 domestic online games in March

BABA

03033

The Hang Seng Tech Index opened down 0.97%. Xiaomi, JD, and NetEase fell over 2%. Risk warning and disclaimer: The market has risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at one's own risk

CSOP HS TECH

ISHARESHSI

Tianhong Hang Seng TECH ETF(QDII)

CAM HS TECH

ISHARESHSTECH

HSTECH ETF

Hang Seng Index

The Hang Seng Index opened down 0.64%, Alibaba fell over 6%

$NetEase(NTES.US) showing signs of reversal daily. None here observationSource: Sunrise Trader

NTES ADR US

Today’s Key News Recap

0306｜Dolphin Research Focus: 🐬 Macro/Industry 1) The US Dept. of Commerce is preparing to globalize its export approval regime for advanced AI chips, moving beyond country-specific controls. Reviews would be organized into three tiers based on purchased compute.Orders exceeding 200k chips would trigger government-to-government negotiations and the disclosure of critical technical details. Approved countries would also be required to commit matching investment in US digital infrastructure.This move reflects US tech hegemony and could destabilize the global semiconductor supply chain. It also raises compliance costs for US chip makers.It is likely to push countries to accelerate domestic compute R&amp;D, supporting China's semiconductor localization. Overall, expect faster onshore capacity build-outs and substitution.

BYD COMPANY

BYD Company Limited

BYD COMPANY-R

BYD Company

Tesla

BYD HK SDR 10to1

Netflix

XIAOMI-WR

Xiaomi HK SDR 2to1

Xiaomi Corporation

BOYD Gaming

BYD's 'disruptive tech' debuts; Xiaomi's mobile Agent emerges | Daily News Recap---

0212 | Dolphin Research Focus: 🐬 Macro/Industry 1) Doubao announced that its video-generation model Seedance 2.0 is now integrated into the Doubao app, desktop client, and web version. Users can create 5s/10s short videos from text prompts and produce clone-style videos, with upgrades to image quality, generation speed, and content fidelity. Leveraging ByteDance's ecosystem should accelerate user adoption and engagement, pushing AIGC toward mainstream, practical use...

Duolingo

Apple

T-Mobile US

Apple Group

Sirius XM

Coinbase

MINIMAX-W

ByteDance

KNOWLEDGE ATLAS

Meta Platforms

Shopify 

Airbnb

Applied Materials

LLMs race ahead as AI apps surge; Apple revamps Siri amid tech bottlenecks｜Daily News Recap

Conference Minutes

Below is Dolphin Research's FY25 Q4 earnings call Trans for $NetEase(NTES.US). For the earnings analysis, cf. 'NetEase: The Pig Farm Still Has to Hold On'.I. Key highlights: 1) Shareholder returns: declared a $1.16/ADS dividend and has repurchased approx. $2.0bn under its $5.0bn program. 2) Outlook: will keep investing in content R&amp;D (R&amp;D ratio to stay above 15%), and expects long-term AI-driven efficiency gains to further unlock...

Sealed Air

Hasbro

Stepstone

Hartford Insurance

Proshares S&P Global Core Battery Metals ETF

NTES (Trans): '遗忘之海' launch slips to Q3; '无限大' still being polished

HU-NTES@EC2612A(28007.HK)

HU-NTES@EC2612A Stock Performance Chart

AI Disrupting China's Online Gaming? JPMorgan: Market Is Ignoring the Real Moat

"Big Banks" JP Morgan: The game license system becomes a moat, Tencent and NetEase will become beneficiaries of AI

NetEase Intelligent Enterprise and Agora will carry out long-term in-depth cooperation in areas such as real-time audio and video, AI Agent, and more

NetEase launches its first localized AI knowledge base "Youdao Treasure"

NETEASE MUSIC releases exclusive usage tutorial for OpenClaw