NetEase Inc (NASDAQ:NTES) shares are trading higher by 2.46% to $93.60 during Monday’s session amid strength in Chinese stocks are trading higher after China lowered key interest rates.

Lower interest rates typically reduce borrowing costs for consumers. This can lead to increased discretionary spending as consumers have more disposable income. NetEase, being a major player in online gaming and digital entertainment, would benefit from higher consumer spending on its platforms and services.

The rate cuts are aimed at stimulating the broader economy by encouraging investment and consumption. An improved economic outlook generally boosts investor confidence, leading to higher stock prices across sectors. As part of the Chinese tech sector, NetEase would benefit from this overall economic stimulus.

Lower interest rates also make borrowing cheaper for companies. This allows businesses like NetEase to finance expansion, invest in new technologies, or enhance their product offerings at a lower cost. Such strategic investments can lead to higher future revenues and profits, positively influencing the stock price.

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How To Buy NTES Stock

By now you're likely curious about how to participate in the market for NetEase – be it to purchase shares, or even attempt to bet against the company.

In the the case of NetEase, which is trading at $93.89 as of publishing time, $100 would buy you 1.07 shares of stock.