Monday's Asia ADR Recap: Perfect World

"It looks like over the weekend people decided that this is fertile ground and they are not being bullish enough because the earthquake damage is pretty extensive," said Howard Gorges, vice chairman of South China Brokerage.

The Shanghai Composite Index slipped 19.47 points, or 0.5%, to 3,604.76 and Hong Kong's Hang Seng Index went up 123.37 points, or 0.48%, to 25,742.20.

Shares of Perfect World (PWRD Quote), a Chinese online game developer, plunged 12% after the company beat Wall Street estimates for the first-quarter, but lowered its second-quarter revenue forecast due to the suspension of online gaming services for three day as part of a national mourning period for earthquake victims. The company said net income jumped 295% to $22.6 million and diluted earnings per American depositary shares were 40 cents, vs. Wall Street estimates of 35 cents. First-quarter revenues soared 247% to $43.2 million, vs. estimates of $39.39 million. American depositary shares of Perfect World, which trade on the Nasdaq, fell $3.99 to $27.31.

Elsewhere in the Chinese online gaming sector, The9 Limited (NCTY Quote), Shanda Interactive Entertainment (SNDA Quote), Giant Interactive Group (GA Quote) and Sohu.com (SOHU Quote) have all suspended their online games for three days starting today in memory and observance of earthquake victims in the country. Shares of NCTY rose 2% to $25.79, SNDA fell 5.6% to $34.88, GA dropped 8.6% to $14.25, and SOHU finished down 1.5% at $82.24.

SINA Corp (SINA Quote), the leading Internet portal in China, announced it has launched an English news site to provide China-related news and content services. The new site will provide coverage of current events in China for an international audience.