Sector Wrap: most Chinese online gaming stocks dip

Beijing-based Giant's American Depositary Shares fell 40 cents, or 3.3 percent, to close at $11.72.

In a note to investors, Oppenheimer & Co. analyst Paul Keung said the investment is "likely to enhance GA's earning capability in the intermediate to longer term."

Keung rates the stock "Outperform" with an $18 price target.

Meanwhile, shares of Hong Kong-based software, gaming and Internet service provider CDC Corp. fell 9 cents, or 3.6 percent, to $2.40.

In a client note, Brean Murray Carret & Co. analyst Andrey Glukhov said CDC Games "seems to be losing momentum" and noted he is seeing declining average download numbers for its games "Special Force" and "Yulgang."

"In addition, the company took down nearly 30 percent of servers in 'Yulgang' for maintenance, which in the past has been an excuse to discontinue servers," he said.

CDC spokesman Monish Bahl said the company has not seen a slowdown in "Yulgang" revenue, but noted that a competitor in the China market has slowed "a very torrid growth rate" for "Special Force."

Bahl said that the takedown of servers for maintenance is not related to a drop in demand, and he also noted that the company recently reiterated its guidance for the quarter.