NTES Short Idea

Firstly, we must be aware of the inherent market fluctuations and technical divergences that have been observed with NTES. Despite positive trends, there's been a noted divergence between volume and price, suggesting that while prices are gaining, volume is falling. This kind of divergence can often be an early warning sign of potential volatility or decline in the stock's value​​.

Another point of concern is the regulatory risks that come with investing in Chinese tech and gaming companies like NetEase. The regulatory environment in China is notoriously unpredictable, and changes in regulations or government policies can significantly impact the company's operations and growth prospects. This unpredictability adds a layer of risk that we must consider, as it can affect the stability and predictability of our investment