NTES-S shares plummeted 5.08% intraday on Wednesday, reflecting heightened investor anxiety ahead of the company's upcoming second-quarter and first-half earnings report.

The steep decline was driven by a combination of bearish signals. Prominent private equity firm Jinglin Asset disclosed a massive 81.17% reduction in its NTES holdings during the second quarter, offloading approximately 2.589 million shares. Adding to the pressure, Nomura cautioned that NetEase's Q2 adjusted profit may fall short of market expectations, primarily due to investment losses from stakes in Alibaba and Pinduoduo. Furthermore, HSBC cut its target price for NetEase from US$162 to US$150, compounding the negative sentiment.

The convergence of these factors has visibly unsettled market confidence as the earnings date nears, leading to the sharp sell-off in the afternoon session.