Investing.com — NetEase (NASDAQ:NTES) shares gained 2% in premarket trading Thursday following the company’s conversion to a dual-primary listing in Hong Kong and ahead of its upcoming game release.
The gaming company’s dual-primary listing on the Hong Kong Stock Exchange became effective June 30, removing the “S” designation from its stock name and making it eligible for stock connect. The conversion follows HKEx’s confirmation that over 55% of NetEase’s trading volume had migrated to the exchange over the past year.
NetEase filed an announcement on June 26 regarding the migration exchange notice. The company received notice from HKEx on February 27 that 55% or more of its total worldwide trading volume by dollar value had taken place on HKEx markets over the 2025 fiscal year. NetEase elected to become dual-primary listed rather than use the 12-month grace period extending to February 27, 2027.
The company also announced the upcoming release of its new game Sea of Remnants in July. NetEase held a pre-release live-streaming event on June 26 to reveal the official public testing date, multiple storyline endings, in-game rewards, and IP collaborations. The game completed its last beta test between May 28 and June 19.
“This move should draw increasing fund flow supporting its share price performance, in our view,” Citi analysts commented. The firm maintained a Buy rating and $174 target price on NetEase shares.
Citi analysts added they “continue to see NetEase as a defensive play with resilient gaming profit, consistent dividend payout and absence of heavy AI investment.” The firm opened a 30-day positive short-term view on the stock.
NetEase appointed Ms. Lai Janette Tin Yun and Ms. Li Ching Man as joint company secretaries effective from the Hong Kong primary listing date.
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