NTES-S to Stop Financial Support for Nagoshi Studio Starting in May: Report
Investment Withdrawal: NTES-S has decided to cease investment in Nagoshi Studio starting from May, as confirmed by a spokesperson, although details of the exit terms remain undisclosed.
Financial Implications: The decision to withdraw funding was influenced by the need for an additional investment of approximately JPY7 billion (around HKD347 million) to complete the studio's new project, "Gang of Dragon."
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NTES-S to Stop Financial Support for Nagoshi Studio Starting in May: Report
Investment Withdrawal: NTES-S has decided to cease investment in Nagoshi Studio starting from May, as confirmed by a spokesperson, although details of the exit terms remain undisclosed.
Financial Implications: The decision to withdraw funding was influenced by the need for an additional investment of approximately JPY7 billion (around HKD347 million) to complete the studio's new project, "Gang of Dragon."
CICC Suggests NTES-S and XD INC; Emphasizes Gaming Industry Content Following Google Play's Commission Rate Reduction
Google Play Commission Changes: Google is adjusting its commission rules for Google Play services, allowing third-party payment channels with a reduced commission rate, effective from June 30 in the US and other regions.
Impact on Gaming Profits: The reduction in commission rates is expected to boost profits for overseas gaming products in the short term and shift pricing power from content channels to content creators in the medium to long term.
Market Reactions: Citi anticipates that companies like TENCENT and NTES-S will benefit from the revenue sharing reform in Google Play, although ratings and forecasts for various companies remain unchanged until the new rules are officially implemented.
Stock Performance: Current stock performance for NTES-S and XD INC shows declines, with significant short selling activity reported, indicating market caution ahead of the commission rule changes.
NTES-S Soars Nearly 4% Ahead of Anticipated Dual-Primary Listing
Stock Migration Announcement: NTES-S received a notice from the Hong Kong Stock Exchange indicating that over 55% of its trading volume for FY25 occurred on its markets, leading to a permanent migration of trading to Hong Kong.
Grace Period for Compliance: NTES-S has a 12-month grace period to comply with Hong Kong Listing Rules, ending on February 27, 2027, after which it will have a dual-primary listing status.
Stock Performance: The stock price of NTES-S increased by 1.9% to HKD180.7, with a trading volume of 5.4941 million shares, amounting to HKD997 million.
Short Selling Data: As of March 3, 2026, NTES-S had short selling of $142.91 million, with a ratio of 18.741%.
HSI Rises 66 Points as HSBC and AIA Gain, Baidu Declines After Earnings Report
US Stock Market Performance: US stocks showed mixed results, with the DJIA slightly up by 17 points while the Nasdaq fell by 1.2% due to Nvidia's decline.
Hong Kong Stock Market Opening: The HSI opened 66 points higher after a previous drop, while the HSCEI and HSTECH also saw slight increases in their opening values.
Tech Sector Updates: BIDU-SW reported a 42% YoY decline in non-GAAP net profit, leading to a 5.7% drop in its ADR, while MEITUAN-W postponed its launch in Brazil but opened higher.
Financial Sector Movements: HSBC HOLDINGS and AIA opened higher, while HKEX remained flat, indicating a generally positive trend in the financial sector despite varying short selling ratios.
G Sachs Research: Lunar New Year Consumer Trends Indicate Divergence in Offline Business Formats; Box Office Declines by 40%
Lunar New Year Entertainment Trends: Offline entertainment during the Lunar New Year saw a divergence, with tourism consumption increasing by 19% YoY, while the box office dropped to RMB5.7 billion, a 40% YoY decline, attributed to a lack of quality content.
Stock Market Reactions: Recent stock price corrections in companies like Tencent and Kuaishou are noted, with some nearing the low end of their five-year PE ratio ranges, despite expectations for EPS growth in 2026.
Competitive Landscape: Kuaishou and Bilibili are recognized for their strong business foundations and AI potential, while the music and live streaming sectors face heightened competition.
Goldman Sachs Adjustments: Goldman Sachs lowered its expectations for DAMAI ENT due to potential movie losses but anticipates double-digit growth in IP-related merchandise and overall profit margins improving, maintaining a Buy rating with a revised target price.
TW, SK, SG Markets Reach Record Levels; HK Index Surges Over 700 Points to Exceed 27,000; Tech Stocks Drive Gains with Meituan Rising 7%; AI Model Shares Decline
US Tariff Policy Impact: Following the US Supreme Court's decision to overturn Trump's tariff policy, he announced a 15% global tariff hike, influencing stock market movements in the Asia-Pacific region.
Record Highs in Asia-Pacific Markets: Major stock markets in the Asia-Pacific saw significant gains, with Taiwan's index surpassing 34,000 for the first time, and Singapore and South Korea also reaching historical highs.
Tech Stocks Lead Market Rally: Heavyweight technology stocks, including Meituan, JD, Tencent, Alibaba, and Xiaomi, contributed to the market rally, with notable increases in their share prices and trading volumes.
Decline of AI Model Stocks: Three AI model stocks experienced significant declines after reaching record highs, with Knowledge Atlas, Minimmax, and Haizhi Tech all reporting substantial losses in their share prices.
NTES-S to Stop Financial Support for Nagoshi Studio Starting in May: Report
Investment Withdrawal: NTES-S has decided to cease investment in Nagoshi Studio starting from May, as confirmed by a spokesperson, although details of the exit terms remain undisclosed.
Financial Implications: The decision to withdraw funding was influenced by the need for an additional investment of approximately JPY7 billion (around HKD347 million) to complete the studio's new project, "Gang of Dragon."
CICC Suggests NTES-S and XD INC; Emphasizes Gaming Industry Content Following Google Play's Commission Rate Reduction
Google Play Commission Changes: Google is adjusting its commission rules for Google Play services, allowing third-party payment channels with a reduced commission rate, effective from June 30 in the US and other regions.
Impact on Gaming Profits: The reduction in commission rates is expected to boost profits for overseas gaming products in the short term and shift pricing power from content channels to content creators in the medium to long term.
Market Reactions: Citi anticipates that companies like TENCENT and NTES-S will benefit from the revenue sharing reform in Google Play, although ratings and forecasts for various companies remain unchanged until the new rules are officially implemented.
Stock Performance: Current stock performance for NTES-S and XD INC shows declines, with significant short selling activity reported, indicating market caution ahead of the commission rule changes.
NTES-S Soars Nearly 4% Ahead of Anticipated Dual-Primary Listing
Stock Migration Announcement: NTES-S received a notice from the Hong Kong Stock Exchange indicating that over 55% of its trading volume for FY25 occurred on its markets, leading to a permanent migration of trading to Hong Kong.
Grace Period for Compliance: NTES-S has a 12-month grace period to comply with Hong Kong Listing Rules, ending on February 27, 2027, after which it will have a dual-primary listing status.
Stock Performance: The stock price of NTES-S increased by 1.9% to HKD180.7, with a trading volume of 5.4941 million shares, amounting to HKD997 million.
Short Selling Data: As of March 3, 2026, NTES-S had short selling of $142.91 million, with a ratio of 18.741%.
HSI Rises 66 Points as HSBC and AIA Gain, Baidu Declines After Earnings Report
US Stock Market Performance: US stocks showed mixed results, with the DJIA slightly up by 17 points while the Nasdaq fell by 1.2% due to Nvidia's decline.
Hong Kong Stock Market Opening: The HSI opened 66 points higher after a previous drop, while the HSCEI and HSTECH also saw slight increases in their opening values.
Tech Sector Updates: BIDU-SW reported a 42% YoY decline in non-GAAP net profit, leading to a 5.7% drop in its ADR, while MEITUAN-W postponed its launch in Brazil but opened higher.
Financial Sector Movements: HSBC HOLDINGS and AIA opened higher, while HKEX remained flat, indicating a generally positive trend in the financial sector despite varying short selling ratios.
G Sachs Research: Lunar New Year Consumer Trends Indicate Divergence in Offline Business Formats; Box Office Declines by 40%
Lunar New Year Entertainment Trends: Offline entertainment during the Lunar New Year saw a divergence, with tourism consumption increasing by 19% YoY, while the box office dropped to RMB5.7 billion, a 40% YoY decline, attributed to a lack of quality content.
Stock Market Reactions: Recent stock price corrections in companies like Tencent and Kuaishou are noted, with some nearing the low end of their five-year PE ratio ranges, despite expectations for EPS growth in 2026.
Competitive Landscape: Kuaishou and Bilibili are recognized for their strong business foundations and AI potential, while the music and live streaming sectors face heightened competition.
Goldman Sachs Adjustments: Goldman Sachs lowered its expectations for DAMAI ENT due to potential movie losses but anticipates double-digit growth in IP-related merchandise and overall profit margins improving, maintaining a Buy rating with a revised target price.
TW, SK, SG Markets Reach Record Levels; HK Index Surges Over 700 Points to Exceed 27,000; Tech Stocks Drive Gains with Meituan Rising 7%; AI Model Shares Decline
US Tariff Policy Impact: Following the US Supreme Court's decision to overturn Trump's tariff policy, he announced a 15% global tariff hike, influencing stock market movements in the Asia-Pacific region.
Record Highs in Asia-Pacific Markets: Major stock markets in the Asia-Pacific saw significant gains, with Taiwan's index surpassing 34,000 for the first time, and Singapore and South Korea also reaching historical highs.
Tech Stocks Lead Market Rally: Heavyweight technology stocks, including Meituan, JD, Tencent, Alibaba, and Xiaomi, contributed to the market rally, with notable increases in their share prices and trading volumes.
Decline of AI Model Stocks: Three AI model stocks experienced significant declines after reaching record highs, with Knowledge Atlas, Minimmax, and Haizhi Tech all reporting substantial losses in their share prices.
