NetEase (NTES) Stock Rallies As Easing Trade Tensions Lift Chinese Tech

Shares of Chinese internet and gaming giant NetEase Inc NTES rose 3.2% to $106.80 Monday morning, following news that the U.S. and China had agreed to a temporary easing of tariffs.

What To Know: The 90-day agreement, reached after high-level trade talks in Switzerland, will see most reciprocal tariffs reduced, from punitive rates of up to 125% down to 10%, boosting sentiment around Chinese technology exporters.

NetEase, which generates a significant portion of its revenue from online gaming, cloud services and e-commerce platforms, has been especially vulnerable to tensions affecting data flows, intellectual property scrutiny and cross-border licensing.

The rollback of non-tariff measures, including restrictions on key U.S. software exports and payment processing sanctions, directly benefits NetEase's global gaming distribution and overseas app monetization.

Additionally, the agreement could potentially accelerate regulatory approvals for its international titles and bolster confidence in its U.S.-based partnerships, such as those in mobile gaming and AI development.

Read Also: Bitcoin, Ethereum, XRP, Dogecoin Hold Gains As US, China Agree To Lower Tariffs

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.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of NetEase, which is trading at $106.80 as of publishing time, $100 would buy you 0.94 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, NTES has a 52-week high of $110.66 and a 52-week low of $75.85.