Market Insight

Market Roundup

Last Friday, the stock prices of Tencent (0700) and NetEase (9999) plummeted due to new regulation. On the 23rd, the official announcement on the 23rd stabilized the market’s fear of regulation of the online game industry. Today, online game stocks drove the Hong Kong stock market to rebound in the morning market. The HSI opened 221 points higher and continued its upward trend, rising 249 points or 1.5% in mid-day to 16,590; the HSCEI rose 100 points or 1.8% to 5,589; the HSTECH rose 81 points or 2.3% to 3,629. The mid-day turnover of the market was HK$57.74bn. The National Press and Publication Administration stated that it will listen to opinions from all parties when formulating the regulation. In addition, the number of newly approved domestic online game licenses in December reached 105, including Tencent's "Counter-Strike: Future" and NetEase's "Lost light". Their stock prices rose 10.3% and 5.9% respectively in mid-day. NIO (9866) said orders for its flagship new car ET9 were much higher than expected, and its stock price rose 9.7%.

Source: KGI Asia Investment Strategy

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