NetEase shares rose about 5% after the Shanghai Stock Exchange announced the company's inclusion in Stock Connect, according to an analyst note from Jefferies. The inclusion will take effect on the next trading day following the Hong Kong market close, following NetEase's recent update on its dual primary listing status on June 25. Jefferies views the development positively, citing potential incremental fund flows into the stock. The analysts noted the timing was not totally a surprise given NetEase's market capitalization and its inclusion in major indexes. On the gaming front, the note highlighted that Sea of Remnants is scheduled for release in July, with a PC version set for July 9 and a mobile version later in the month.
NetEase IncInclusion in Stock Connect is expected to drive incremental fund flows, per Jefferies.
Jefferies Financial Group Inc