Regulatory fears may have left Chinese tech stocks battered for much of 2021— but Morningstar says one stock is significantly undervalued. Chinese video gaming giant NetEase ($NTES@China) has seen a lot of volatility in recent months after several regulatory blows, including new rules curbing the number of hours children can spend playing online games to just 3 hours a week. As of Wednesday’s close, its Hong Kong-listed stock was up 2.17 for the year but still more than 25 lower than its February high. The recent regulatory changes in China limiting online gaming time for those under 18 are expected to have a “negligible impact” on NetEase’s long-term earnings, as NetEase disclosed that this age group contributed to less than 1 of its overall gross. NetEase’s operating margin is expected to increase as its core gaming business expands into more profitable overseas markets. The company currently has less than 1 market share in the gaming market outside of China. Having proved its ability to make high-quality and longstanding mobile games for the Japanese market, NetEase is well-positioned to capitalize on this massive opportunity outside China.