NTES-S shares surged 5.34% during intraday trading on Tuesday, propelled by a wave of bullish sentiment in the gaming sector after the latest batch of game license approvals reached a five-year high.

The National Press and Publication Administration issued 197 game licenses in its seventh batch this year — the largest single-batch approval in five years — signaling continued regulatory support for the industry. Citi noted that the timing ahead of the summer peak season reinforces confidence in leading developers like NTES-S, which can leverage its strong pipeline and R&D capabilities for sustainable growth.

Institutions have also pointed to multiple catalysts for NTES-S in the second half, including a low revenue base, accelerated share buybacks, and upcoming new product launches, suggesting potential for valuation repair.