Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of China-based online gaming outfit Perfect World (Nasdaq: PWRD) scored a jackpot this morning, soaring up to 21.8% overnight on heavy, heavy volume.

So what: The company reported second-quarter earnings this morning, and investors love the results. Sales of $120.6 million comfortably beat the $108 million analyst consensus, and adjusted earnings of $1.01 per depositary share absolutely crushed the $0.57 average estimate.

Now what: Perfect World also annihilated expectations three months ago as the company continued to tap into a burgeoning Chinese middle class. In the words of CEO Michael Chi: "With the continued rise of the number of Internet users in China, it is highly likely that the online gamer population in China will also continue to grow rapidly."

Heavily invested in MMORPG franchises that would feel familiar to players of Activision Blizzard (Nasdaq: ATVI) hit World of Warcraft, Perfect World is positioned for years of incredible growth as Chinese gamers jump online. The presence of local rivals Shanda Interactive (Nasdaq: SNDA) and NetEase (Nasdaq: NTES) might scare investors, but there's plenty of room for many players to grow in this potentially enormous market.

Interested in more info on Perfect World? Add it to your watchlist.