NetEase Shares Primed For Turnaround After China Games Approval

  • Company gets first approval since Beijing halted licensing
  • Put-to-call ratio falls to Oct. 2021 low as bullish bets rise

   

Source: Bloomberg

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Options traders are indicating that one of China’s largest gaming companies is primed for a stock market turnaround after a long-awaited regulatory approval.

This week, NetEase Inc. won approval for a new game for the first time since Chinese regulators froze all licensing in 2021 as part of a crackdown to curb gaming addiction. The company had missed out on previous rounds of approvals that resumed in April, worrying investors.