Several banks have recommended a “buy” rating for NetEase’s shares after the internet company sold its cross-border e-commerce platform to rival Alibaba last week.
JP Morgan, Guotai Junan Securities and China Merchants Securities are all upbeat about NetEase after it sold NetEase Kaola, its e-commerce business for $2 billion.
Although a leading player in the Chinese internet market, NetEase has always appeared to be an also-ran in other businesses. Apart from its mainstream gaming business, it has tried e-commerce, online music streaming, a search engine business and online education.
But the sale of its e-commerce platform has sent...