NetEase (NTES) stock is soaring 5.56% in pre-market trading on Monday, buoyed by positive news in the gaming sector and a broader rally in U.S.-listed Chinese shares. The significant uptick comes as investors react to the latest batch of domestic game approvals in China and an overall bullish sentiment in Chinese markets.

The primary catalyst for NetEase's stock surge appears to be the approval of its game "Tianxia: Wanxiang" by China's National Press and Publication Administration. This approval was part of a larger announcement that saw 166 games receiving the green light for domestic release in August 2025. The news is particularly significant for NetEase, as it signals potential for new revenue streams and growth in the highly regulated Chinese gaming market.

Adding to the positive momentum, U.S.-listed Chinese shares are experiencing a broad-based rally, mirroring gains in mainland China and Hong Kong markets. This wider trend is fueled by abundant liquidity and bullish sentiment across the region, with rare earth and property stocks leading the gains. Other major Chinese tech companies, including Alibaba, JD.com, and Baidu, are also seeing notable pre-market increases. This broader market rally provides a favorable backdrop for NetEase's stock performance, potentially amplifying the positive impact of its game approval news.