---
title: "Is NetEase Stock Halal?"
canonical: https://www.halalwallet.ca/is-it-halal/netease-stock
publisher: HalalWallet
license: CC BY 4.0
verdict: not_halal
verdict_label: Not Halal
entity_type: stock
ticker: NTES
exchange: NASDAQ
last_reviewed: 2026-06-14
data_as_of: 2026-03-31
standards_disagree: true
authorities_with_position: 2
authority_agreement: unanimous
---
# Is NetEase Stock Halal?

**Authority consensus:** All 2 halal screening authorities with a published position rate NetEase, Inc. not halal.

**Verdict: Not Halal** (Not permissible)

NetEase, Inc. (NTES) does not pass Shariah screening: its core business fails the activity screen (NetEase is principally a gaming and online entertainment company (mobile/PC games, NetEase Cloud Music, Youdao education), and cash + interest-bearing securities / market cap is 31.5% against the < 30% limit (data as of 2026-03-31). Screened alternatives exist in the same sector — see the halal stock screeners and ETF guides below.

> HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.

## How we read the evidence

NetEase is principally a gaming and online entertainment company (mobile/PC games, NetEase Cloud Music, Youdao education). Gaming is the dominant revenue line — Musaffa, Zoya, and MuslimXchange classify NTES as non-compliant on business-activity grounds. Also fails the AAOIFI cash/securities ratio at 31.5% of market cap.

Our verdict rests primarily on the business-activity screen: NetEase is principally a gaming and online entertainment company (mobile/PC games, NetEase Cloud Music, Youdao education). Gaming is the dominant revenue line — Musaffa, Zoya, and MuslimXchange classify NTES as non-compliant on business-activity grounds. Also fails the AAOIFI cash/securities ratio at 31.5% of market cap. Financial ratios alone cannot cure a failed activity screen.

Zoya's public page did not return a clear status when we checked (checked 2026-06-15). Musaffa lists it NOT HALAL. U.S. Shariah ETFs SPUS and HLAL publish holdings on their own schedules — absence from a top-holdings list is not the same as a failed screen; verify current ETF holdings if index validation matters to you.

Practical takeaway: do not treat this as a borderline hold — the fail is structural on our methodology. Use Shariah-screened ETFs (SPUS, HLAL) or individually screened peers in the same sector instead.

## Business activity screen

Result: Fail

NetEase, Inc., a prominent technology firm founded in 1997 and headquartered in Hangzhou, People's Republic of China, delivers a broad spectrum of online services both within China and across international markets. Its core operations encompass online gaming, music streaming, intelligent online learning solutions, and diverse internet content services. The company organizes its activities into several key divisions: Games and Related Value-Added Services; Youdao, focusing on educational technolo

NetEase is principally a gaming and online entertainment company (mobile/PC games, NetEase Cloud Music, Youdao education). Gaming is the dominant revenue line — Musaffa, Zoya, and MuslimXchange classify NTES as non-compliant on business-activity grounds. Also fails the AAOIFI cash/securities ratio at 31.5% of market cap.

## Financial ratio screen (AAOIFI)

Data as of: 2026-03-31

| Screen | Value | Limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 2.0% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 31.5% | < 30% | Fail |
| Impermissible income / total revenue | 4.1% | < 5% | Pass |

Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology

## How it screens across Shariah standards

These standards disagree on this company — it passes some and fails others, which is why different apps can show different answers. The headline label follows AAOIFI (the strictest mainstream standard).

| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 2.0% | 31.5% | < 30% of market cap | Fail |
| Dow Jones Islamic / S&P Shariah threshold | 2.0% | 31.5% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basis | 4.7% | 73.9% | < 33.33% of total assets | Fail |

HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded); the < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen.

## Scholars' and screeners' positions

- **Musaffa**: Public page classifies the stock NOT HALAL (checked 2026-06-15). ([source](https://musaffa.com/stock/NTES/))
- **HalalWallet AAOIFI screen**: Rates NetEase, Inc. (NTES) non-compliant: it fails the business-activity screen — its core operations fall in a sector AAOIFI screening treats as non-compliant (see the activity description and analysis on this page). ([source](/halal-stock-screening-methodology))

## Sources

- NTES latest quarterly filing (balance sheet 2026-03-31) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=NetEase%2C%20Inc.&type=10-Q)
- AAOIFI Shariah Standards (https://aaoifi.com)
- NetEase, Inc. SEC EDGAR filings (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=NetEase%2C%20Inc.&type=10-K)
- Zoya — NTES Shariah compliance (https://zoya.finance/stocks/ntes)
- Musaffa — NTES (https://musaffa.com/stock/NTES/)
- SPUS Schedule of Investments reference (2026-02-28) (https://www.sec.gov/Archives/edgar/data/1742912/000200032426001717/spus-soi_022826.htm)
- HLAL holdings reference (2026-06-05) (https://stockanalysis.com/etf/hlal/holdings/)

## Frequently asked questions

### Is NetEase, Inc. (NTES) stock halal?

No. NetEase, Inc. fails Shariah screening — see the screen table and analysis on this page for the specific business-activity or ratio reasons.

### Does NetEase, Inc. pass the AAOIFI financial ratio screen?

As of 2026-03-31: interest-bearing debt is 2.0% of market cap (limit < 30%); cash plus interest-bearing securities is 31.5% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page.

### Is NetEase, Inc. held in halal ETFs like SPUS or HLAL?

Check the scholar/screener positions and sources on this page for current SPUS, HLAL, Zoya, and Musaffa statuses.

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- [Is Bunge Global Stock Halal?](https://www.halalwallet.ca/is-it-halal/bunge-global-stock.md) — Not Halal

---

Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30).

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