Other listed Chinese ongame companies such as NetEase and Giant Interactive have been posting sales growth.
FORBES: Chinese Tech Billionaire Lei Jun's Kingsoft Climbs 18% On Surge In Profit
Some of China's most successful companies, including NetEase and Baidu, received foreign capital this way.
Collins cashed out with a 210% gain in the Netease shares he's held since February.
Names like J2 Global, NetEase and eResearch were big winners for Oberweis last year.
Netease makes most of its money from online multiplayer games such as World of Warcraft.
FORBES: Divergent Quarters For Chinese IT Billionaires As Gaming Trumps Search
On Thursday, it was the turn of Netease, an online gaming company run by William Lei Ding.
FORBES: Divergent Quarters For Chinese IT Billionaires As Gaming Trumps Search
Sina's counterpart Netease, a community-based portal which listed last week, wasn't that successful.
Sohu does not match up well against its host of competitors, especially its two main portal rivals, Sina.com and NetEase.
FORBES: Chinese Companies To Nasdaq: Sayonara, Zai Jian, Bye Bye
Violations with just one ministry can kill an operation, as happened when Netease launched World of Warcraft in September last year.
FORBES: China Is Governing The Internet Industry The Wrong Way
Among the largest underlying components of FEM, in trading today , and NetEase, Inc ( NASD: NTES) is up by about 0.3%.
Chinese Internet outfit Netease.com is up 40% since early November, and mobile phone content producer InfoSpace has gained as much since September.
"There are other big gaming companies doing business in the territory including Shanda and Netease, " said Piers Harding-Rolls from IHS Screen Digest.
So out of Sina, Sohu, Chinadotcom, Netease maybe two would survive.
The board hated the idea, but as majority shareholder Ding got his way, and NetEase launched its first game in December 2001.
FORBES: Game Boy: Billionaire William Ding Lei Has A Few Fantasies Of His Own
Ding founded NetEase in 1997 as a software company, with three employees.
FORBES: Game Boy: Billionaire William Ding Lei Has A Few Fantasies Of His Own
Games proved to be a gold mine for NetEase and its founder.
FORBES: Game Boy: Billionaire William Ding Lei Has A Few Fantasies Of His Own
"There's definitely profit to be made here, " says Kennedy, though he doubts the rise, like that of Netease, will be a smooth slope.
Those companies are now down 30% to 40% from their highs, two weeks after Netease reported a 20% decline in its short-messaging-service business.
Netease got a much better response from Wall Street: its shares rose 8% after the company beat earnings forecasts by a comfortable margin.
FORBES: Divergent Quarters For Chinese IT Billionaires As Gaming Trumps Search
Soon after Taobao was launched, eBay signed exclusive advertising rights with major portals Sina, Sohu, and Netease with the intention of blocking advertisements from Taobao.
Most of Netease's business is selling messaging services to mobile phone users in China--a profitable business that does not depend on the vagaries of advertising.
Oberweis and his team of analysts are less enthusiastic about Netease.
Kotick contends Activision is the most successful Western video game software company in China already, via Worlds of Warcraft and Starcraft, both in partnership with NetEase.
Perfect World was one of the first movers in the Chinese online gaming market, but has since ceded market share to its competitors like NetEase and Giant Interactive.
FORBES: Perfect World Stock Worth $21 Even In Imperfect Chinese Economy
Collins may also be comfortable with the untapped potential in the Chinese population and the relative valuation of a company like Netease to its closest American Internet peer.
Despite having much more room to grow in China, Netease trades at 27 times estimated 2004 earnings, compared with the forward price-to-earnings multiple of 74 enjoyed by Yahoo!
Netease is one of the most trafficked sites in China.
FORBES: Is Netease Purchasing 50% of Microsoft's MSN China Joint Venture?
The industry has in the past decade spawned billionaire role models such as William Ding of Netease, Chen Tianqiao of Shanda, and Shi Yuzhu of Giant Interactive.
FORBES: No Clients, No Problem! Wang Bin's Spirited March To China Online Game Success
Netease is a very sucessful game developer and publisher.
FORBES: Is Netease Purchasing 50% of Microsoft's MSN China Joint Venture?
To accommodate the employees of Alibaba, Netease and Geely, three leading Chinese companies that are already headquartered there, developers are racing to build high-end apartments and condominiums like the Hyatt luxury residences.
应用推荐