$NTES-S(09999)$ The best setup is holding both $TENCENT(00700)$ and NetEase together, they dominate about 80% of China's gaming and online music market. NetEase's cost-cutting isn't unsustainable; it’s actually part of improving operational efficiency by trimming low-return projects. It also holds a solid cash position (~20%).
Tencent, on the other hand, has massive investment assets (around ¥1 trillion, ~20% of total assets), and its core business trades at a PE of around 15–18. Both are quality businesses with consistent 20% ROE, making them strong long-term compounders. One is a cash king, the other an ecosystem giant，a powerful duo for any serious investor.
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