Alvin Kwok, Managing Director of Harbor Family Office Business Development, stated that on Tuesday (19th), the US stock market fluctuated after an initial decline, with tensions between Russia and Ukraine causing concerns about geopolitical risks, leading the market to dip in the early session and gradually stabilize at lower levels later on. The three major indices closed with mixed results. The US dollar remained soft at high levels, with the yield on the US 10-year bond falling to 4.39 percent, while gold and oil prices showed positive trends. Hong Kong H shares generally experienced a decline, and it is expected that the market will follow a lower opening in the early session.

Mainland Chinese stock market rose yesterday, with the Shanghai Composite Index opening low and rising, closing up by 0.7%. The trading volume in Shanghai and Shenzhen remained active.

Hong Kong stocks rebounded following the mainland Chinese stock market, with the index reaching a high of 19,700 points at one point, and the gains slightly retreated towards the end of the market session, with the market continuing to face low trading volume. Investors are monitoring changes in the geopolitical situation and interest rate direction, maintaining a cautious market sentiment, and expecting the indices to hover around the 19,000 to 20,000 point level.

NetEase-S (09999.HK) recently announced its third-quarter financial results, reporting a profit of 7.499 billion Chinese yuan under non-GAAP, a year-on-year decrease of 13.3%. Net income was 26.21 billion yuan, a decrease of 3.9% year-on-year. Among them, net revenue from gaming and related value-added services was 20.864 billion yuan, down by 4.2%. Youdao's net revenue was 1.573 billion yuan, an increase of 2.2%. NetEase Cloud Music's net revenue was 1.999 billion yuan, up by 1.3%; innovative and other business revenue was 1.774 billion yuan, down by 10.3%.

NetEase stated that it will continue to prioritize players' needs, drive development through innovation, and bring excellent gaming experiences to more players domestically and internationally. Apart from gaming, NetEase Cloud Music and Youdao also showed steady growth. The group is committed to providing unique, attractive, and influential product experiences to user communities, driving NetEase to continuously create success. Due to the recent poor performance, market expectations for NetEase's earnings have been lowered, making the current earnings exceed market expectations, with strong growth in computer games and deferred revenue becoming the main highlights of performance. The market expects an improvement in the gaming business next year, mainly due to the upcoming launch of several games by the end of this year, providing momentum for revenue growth next year.

(The author is a licensed person of the SFC, and neither he nor the relevant persons hold the above shares)~