(NTES) is already rebounding, as hoped.

As we noted on Dec. 24, “Over the last few days, shares of (NTES) gapped from $105 to $87.64. All after Chinese regulators introduced regulations to reduce spending, and cut incentives that promote excessive gaming. It could soon refill its bearish gap.”

Today, after China’s National Press and Public Administration said it would “carefully study” the concerns of “all stakeholders on draft rules aimed at curbing excessive online gaming and spending,” shares of NTES rallied about $4.56 a share on a volume spike to 8.03 million shares, as compared to daily average volume of 1.5 million shares.

Last trading at $92.20, we still believe NTES can refill its bearish gap around $102.50.