NetEase, Inc. (NTES) and Tencent Music Entertainment Group (TME) are two prominent entertainment services providers based in China. NTES provides online services focusing on gaming, communication, and commerce internationally. It develops and operates PC and mobile games and offers games licensed by other developers. In comparison, TME operates online music entertainment platforms that provide music streaming, online karaoke, and music-centric live streaming services supported by content offerings, technology, and data. It has a strategic partnership with China Literature.
Growing concerns over the Russia-Ukrainian war make the equity markets volatile for nations having significant exposure to the crisis. China’s less exposure to this conflict is likely to keep its stock markets in better shape in the near term. According to emerging-market veteran Mark Mobius, “it’s a good idea to increase China exposure, given the country is less at risk from the conflict in Europe.” Moreover, the nation’s self-reliant innovation strategy and efforts to ensure improved security and better user experience should enable many Chinese stocks to gain in the future.
