China Stocks

[Gamma1848]

NTES: they have had trouble with regulators in the past.

About 18 months ago NTES first attempted to launch their World of Warcraft in china but they didn't have the right guanxi or they didn't grease the right palms and their launch got held up substantially as two regulatory bodies attempted to exert control over online video games.

When NTES got appoval from only one of the regulatory bodies they launched the game causing the other agency to loose face. NTES had to pay a fine, publically apologize, and reel in their launch. Eventually the game got approved, recently sending the stock to alltime highs

I am not familiar with the NTCY story but due to the fact that NTES had a history of poor government relations and because they have embarrassed some of their regulators with their premature launch of WoW I would consider them a high risk in the event of a government crackdown. That said, as an investor I wasn't overly concerned th at another crackdown is immanent.

FWIW the last time I was in Shanghai I did see billboards for their 163.com website everywhere.