What smart money is saying about NetEase
1 fund in our archive has pitched NetEase — most recently Matthews Asia Innovators Fund in September 2026.
NetEase, Inc., a prominent technology firm founded in 1997 and headquartered in Hangzhou, People's Republic of China, delivers a broad spectrum of online services both within China and across international markets. Its core operations encompass online gaming, music streaming, intelligent online learning solutions, and diverse internet content services. The company organizes its activities into several key divisions: Games and Related Value-Added Services; Youdao, focusing on educational technology; Cloud Music for its audio streaming offerings; and a segment for Innovative Businesses and Others. Within its gaming division, NetEase is responsible for creating and managing both PC and mobile games, and it also publishes titles licensed from external game developers. The Youdao segment provides a comprehensive suite of online learning and translation tools, including Youdao Dictionary, Youdao Translation, U-Dictionary, and Youdao Kids' Dictionary. It also manufactures smart devices like the Youdao Dictionary Pen, Smart Learning Pad, and Listening Pod. Furthermore, Youdao offers online courses, interactive educational applications, and advanced digitalization solutions for education, such as the Youdao Smart Learning Terminal for automated homework processing, Youdao Smart Cloud (a platform offering OCR capabilities to third parties), and Youdao Sports, a sports-focused educational system. Beyond these, NetEase manages an array of other popular internet services. These include NetEase Cloud Music, a significant music streaming platform; Yanxuan, an e-commerce platform specializing in private label products; the www.163.com portal and its companion mobile app, Wangyi Xinwen, which deliver news, sports, technology, fashion, and entertainment content; NetEase Mail, an email service; NetEase CC Live, a live streaming platform primarily dedicated to game broadcasting; and NetEase Pay, a secure payment system. The company, originally known as NetEase.com, Inc., officially adopted its current name, NetEase, Inc., in March 2012.
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Position history
Between Q2 2025 and Q3 2026, 10 fund letters reported a position in NetEase — 3 opened or added to the position.
| Quarter | Letters | Bought | Sold | Theses |
|---|---|---|---|---|
| Q3 2026 | 2 | 0 | 0 | 1 |
| Q2 2026 | 5 | 1 | 0 | 0 |
| Q4 2025 | 1 | 0 | 0 | 0 |
| Q2 2025 | 2 | 2 | 0 | 0 |
Fund activity · 10 positions · 3 moves
- July 2026
Listed in Guinness Asian Equity Income Fund’s reported holdings.
NetEase - July 2026
“NetEase China Comm Services”
NetEase - June 2026
“China- based internet games and platform companies NetEase and Tencent have both reported resilient user, revenue, and earnings growth.”
NetEase - June 2026
“Netease reported Q1 2026 earnings, which beat consensus with revenue up +6% year-over-year, driven by their game business line and underpinned by deferred revenues recognised from the previous quarter.”
NetEase - June 2026
Listed in Guinness Asian Equity Income Fund’s reported holdings.
NetEase - June 2026
“Other notable contributors included Panamanian airline Copa Holdings, Chinese video game developer NetEase, and select bank holdings such as Panama’s Bladex, Austria’s Erste Group, and Georgia’s TBC Bank.”
NetEase - New positionBrandes IP International Equity FundJune 2026
“New purchases included agricultural equipment firm CNH Industrial, Ireland-based ingredients and flavoring business Kerry Group, Chinese gaming company NetEase, and Swedish household products company Essity.”
NetEase - December 2025
“In 2025, gains were largely driven by stocks we have owned for a decade or more, such as Kiwoom, Jardine Matheson, NetEase, and Tencent.”
NetEase - AddedDavis Global FundJune 2025
“NetEase Founded in 1997, NetEase is the second largest online video game developer and publisher in China. Like many Chinese internet companies, NetEase is a founder-led company with William Ding (only 53 years old) at its helm. The company owns and operates a large portfolio of mobile and PC games popular among Chinese gamers. NetEase’s roots are in the massively multiplayer online role-playing game (MMORPG) genre. It has several flagship titles like Westward Journey and Fantasy Westward Journey that date back to the early 2000s yet remain meaningful revenue generators even today. NetEase was originally a PC-based game developer but has successfully Stock Index P/E Ratio vs. MSCI ACWI vs. S&P 500 Index MSCI China 12.0x −39% −48% MSCI ACWI 19.6x S&P 500 Index 23.2x Fig. 10: China Trades at a Discount25 China/Hong Kong—Valuations of Major Stock Indices 25. Source: Bloomberg. Data as of 7/18/25. DGF | SEMI-ANNUAL REVIEW [ 12 ] transitioned its titles to mobile and, over time, has expanded its game portfolio via in-house development and through partnerships with Western IP holders like Marvel and Blizzard. The online video game business is the key value driver, making up 79% of revenues and an even higher percentage of profits. However, the company has also organically stood up a handful of other businesses over the years with its ventures in online education (Youdao) and streaming music (Cloud Music) being the most notable. NetEase’s games are primarily free-to-play with monetization coming from the sale of in-game virtual items such as special avatars, privileges and weapons. Mobile games generated 73% of NetEase’s gaming revenues in 2024 with the remainder coming from PC games. Owning and operating category-leading free-to-play online games has proven to be a great business over time, particularly as key franchises continue to prove their durability and stickiness with users. New hit games are increasingly difficult and risky to develop given the rising cost per game and falling success rate. NetEase has a highly profitable portfolio of franchise games and a strong track record of producing hit games. This makes it one of the few game developers well-positioned to earn good returns on future game development and capitalize on the long-term growth potential of the market. In late 2024, when the market was concerned about near-term revenue weakness in several game franchises, we took advantage of weakness to build a position in NetEase at an attractive valuation.”
NetEase - June 2025
“In late 2024, when the market was concerned about near-term revenue weakness in several game franchises, we took advantage of weakness to build a position in NetEase at an attractive valuation.”
NetEase
Also mentioned · 1
These funds discuss NetEase — as a competitor, benchmark or comparable — without disclosing a position in it.
- June 2026
“Spotify adds to other holdings of media or interactive services companies in the Communication Services sector that have also faced falling share prices due to fears of AI disruption. China-based internet games and platform companies NetEase and Tencent have both reported resilient user, revenue, and earnings growth.”
NetEase
Fund coverage · 1 thesis
- Matthews Asia Innovators FundSeptember 2026
NetEase is a leading Chinese online gaming company with established franchises, growing international reach, and rising AI-enabled content opportunities.
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