By Kimberley Kao

NetEase shares fell Tuesday amid an otherwise bullish trading session in Hong Kong, with sentiment for the Chinese videogame publisher hurt by the lackluster debut of its newest game.

NetEase shares posted their worst drop in more than a year, closing 6.9% lower at 151.60 Hong Kong dollars (US$19.37). The stock was the worst performer among constituents of the Hang Seng Index, which started the second quarter with a 2.4% gain.

NetEase's latest game, "She Diao," launched last week but has since ranked outside of the top 10 titles in terms of China iOS game grossing, according to Jefferies analysts who examined data from market intelligence firm Sensor Tower.

Citi Research analyst Alicia Yap, who last week reiterated a buy rating on the stock and estimated that "She Diao" would generate 100 million yuan (US$13.8 million) in revenues in the first quarter, flagged the game's "somewhat disappointing download and grossing metrics."

As of late Tuesday, the game ranked 30th in iOS game grossing in China, according to research firm

NetEase is one of China's largest game makers, competing with the likes of Tencent. Its fourth-quarter earnings last year saw lower-than-expected sales of its games, but its "growth prospect" remains positive, given the new game releases in the pipeline for the year and its overseas expansion plans, Yap said in a note earlier commenting on results.

Write to Kimberley Kao at

(END) Dow Jones Newswires

04-02-24 0632ET