By Tracy Qu

NetEase shares rose sharply in Hong Kong after the mobile version of its blockbuster PC title game was approved, fuelling expectations of strong earnings this year.

Shares rose 5.5% to hit 178.30 Hong Kong dollars (US$22.80) at the midday break Wednesday, taking their year-to-date gain to 26.8%. The company's U.S.-listed ADRs rose 5.3% in overnight trade.

China's National Press and Publication Administration on Tuesday approved more than 100 titles for February, adding to NetEase's game portfolio.

The market was particularly enthusiastic about the approval of the mobile version of NetEase's blockbuster PC title Naraka Bladepoint. The game, launched in 2021, is one of the best-selling Chinese PC games with a global presence in countries such as the U.S. and Japan.

Naraka Bladepoint's mobile version and other new launches will likely be the "key drivers in 2024", HSBC analysts Ritchie Sun and Charlene Liu said in a note.

Naraka Bladepoint's PC version was well received by players and named a Top Seller on the Steam gaming platform's Best of 2021 games list, NetEase said in its 2022 annual report.

The regulatory approval comes ahead of NetEase's fourth quarter results due Thursday and analysts are expecting the company to post strong earnings due to the robust performance of video games such as Justice Mobile and Eggy Party.

Write to Tracy Qu at

(END) Dow Jones Newswires

02-28-24 0010ET