The Online gaming industry is going nuts in China with massive competition and NetEase.com(Nasdaq: NTES) continues to dominate. This Chinese company is taking a foreign currency in euro-denominated time deposits. NetEase has nearly $11 per ADS in cash and time deposits.
The pros underestimated NetEase's potential. Even some of the laggards are holding up like Giant Interactive(NYSE: GA) posted 33% and 17% gains in revenue and earnings growth. Changyou.com(Nasdaq: CYOU) came through with a 30% uptick in year-over-year top-line growth.
Perfect World(Nasdaq: PWRD) and Shanda Games(Nasdaq: GAME) report soon.
NetEase was growing faster through its plum role as the licensee of Activision Blizzard's (Nasdaq: ATVI)World of Warcraft in China..
The Chicoms can restrict Internet access and young Chinese gamers may move on to new diversions. Risks are high, but the potential rewards to investors are monsterous.