In Chinese these are called literally "Net Novels," as they often start out as serialized stories on popular fiction and literary sites, much like how traditional wuxia was used to sell newspapers. I guess you could call these fanfiction even, though much of the work is original, only borrowing the genre conventions rather than characters and settings. The most popular works are often made into actual print books, and the whole commercial aspect of it is very developed and widely adopted in PRC/HK/TW net circles. Because there's such a huge volume of stories, just in the wuxia genre even, quite often you can come across works of surprisingly high quality, amidst a sea of mediocrity. Perhaps unsurprisingly many of the most popular works of this nature contain a lot of sex, which can be far more graphic than what you're used to in Gu Long or Huang Yi novels. This doesn't necessarily detract from the overall quality of the stories of course, which are also characterized by humor and wildly inventive settings. The readership of these net novels is huge amongst Chinese-speaking users. Below are several that I recommend, the titles of which I won't attempt to translate.

浪子江湖 - A guy with mediocre skills becomes a reknowned hero through a series of strange encounters that all started when he was wrongly accused of being a peeping tom. Naturally he woos and beds a string of pretty girls in the process. PG-13 at most when it comes to sex.

蝉翼剑 - A really great story that's quite like and almost as good as Jin Yong's Duke of Mounted Deer, except that the protagonist starts out as even more of a loser. Highly recommended.

玄媚剑 - A good example of "erotic wuxia." Make no mistake though, the plot and characters are still very interesting, and the style and command of language are also top-notch. It's just that all the twists and turns are separated by paragraphs upon paragraphics of steamy though far from tasteless sex.