On Wednesday, NetEase shares surged as much as 10% in early trading as Hong Kong markets returned from the Christmas holidays. Rival Tencent climbed almost 5.2% in early trading.
Chinese regulator, the National Press and Publication Administration, announced last Friday a wide range of draft rules aimed at curbing excessive online gaming and spending, sparking fears that the regulator was once again cracking down heavily on the sector.
But after shares in gaming sector stocks plummeted, there was an apparent softening in stance by China's video game regulator, which released a statement last Saturday saying the government would further improve the proposed rules after "earnestly studying" public views.