JPM Expects NTES-S to Be Included in Shanghai-Hong Kong Stock Connect Upon Dual Primary Listing, Positive for Share Price

JPMorgan issued a research report stating that NTES-S (09999.HK) +11.900 (+6.347%) Short selling $293.26M; Ratio 25.527% will convert to a dual primary listing on the Hong Kong Stock Exchange starting tomorrow (30th). JPM expects NTES-S to become eligible for inclusion in the Shanghai-Hong Kong Stock Connect on the same day, as the company does not adopt a weighted voting rights (WVR) structure and is already a constituent of the Hang Seng Composite Index. Based on precedents of non-WVR companies such as ZAI LAB (09688.HK) +0.280 (+2.013%) Short selling $15.66M; Ratio 18.409% and YUM CHINA (09987.HK) +4.400 (+1.392%) Short selling $8.93M; Ratio 5.902% , firms that converted from secondary to dual primary listings were included in the Shanghai-Hong Kong Stock Connect on the effective date of the conversion.

JPM believes that inclusion in the Shanghai-Hong Kong Stock Connect will allow mainland investors to trade the stock directly via southbound flows, bringing additional capital inflows and improving liquidity, which will have a positive impact on NTES-S’s share price.

The bank forecasts NTES-S’s operating profit to increase by 25% in 2026. It believes the recent pullback in the stock was driven by broad-based selling pressure on Chinese internet stocks rather than concerns over the company’s fundamentals. JPM reiterates NTES-S as its top pick in the digital entertainment sector, maintaining an Overweight rating with a TP of HKD290. (sl/a)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-29 12:25.)