StockCall Study: China's Huge Internet Market Offers Major Opening to Baidu and SINA

 StockCall Study: China's Huge Internet Market Offers Major Opening to Baidu
                                   and SINA

PR Newswire

LONDON, February 11, 2013

LONDON, February 11, 2013 /PRNewswire/ --

In 2008, China overtook U.S. as the world's biggest Internet market. In the
next four years, China's Internet market has more than doubled. The Chinese
Internet market is expected to continue to grow at a robust pace this year,
offering significant opportunities to companies such as Chinese language
search engine provider Inc. (ADR) (NASDAQ: BIDU) and online media
company SINA Corp. (NASDAQ: SINA). StockCall free coverage on Baidu and SINA
is available upon registration at

The World's Biggest Internet Market

In June 2008, Internet users in China hit 253 million, which helped the
country overtake the U.S. as the biggest Internet market. Since then China's
Internet market has grown at a robust pace, more than doubling its size by
June 2012.

According to data from China Internet Network Information Center's (CNNIC)
30^th Statistical Report on Internet Development in China, released in
September last year, China had 538 million Internet users by the end of June
2012. Internet penetration rate reached 39.9% by the end of June 2012. While
538 million Internet users is a huge number, the fact that less than half of
China's population still has Internet access suggests that there is scope for
further growth.

The CNNIC report showed that China had 146 million rural Internet users by the
end of June 2012, which is an encouraging sign.

The robust growth in China's Internet market is expected to continue in 2013,
with the CNNIC forecasting that the country's Internet population will hit 718
million by 2013. This presents significant opportunities to companies such as and SINA. Download the free technical research on SINA by signing up

China's Biggest Search Engine is China's biggest search engine provider, with around 60% of the
market share. Earlier this week, the company had reported robust fourth
quarter financial results. Register now and get access to the free analysis on at

BIDU's total revenue in the fourth quarter of 2012 was $1.017 billion, up
41.6% over the same period in the previous year. For the full year 2012, the
company had revenue of $3.58 billion, up 53.8% over 2011.

Robin Li, Chairman and CEO of Baidu, noted that revenue growth and
profitability maintained a healthy trajectory in 2012 as the company continued
to invest aggressively in developing a comprehensive ecosystem. Li said that
in 2013, the company will be stepping up its investments and increasing its
sales and marketing efforts to ensure it captures the huge opportunities

The challenge for will be to adapt as more and more Internet users
in China shift to mobile. According to CNNIC report, in the first half of
2012, the percentage of mobile Internet users rose to 72.2%. With smartphones
and tablet sales expected to grow at a robust pace in China, mobile Internet
users are expected to rise.

Opportunities for SINA

SINA, which operates the micro-blogging site, is looking to
capitalize on the increase in mobile microblog users in China. According to
data from CNNIC, mobile microblog users rose from 137 million at the end of
2011 to 170 million by the end of 2012.

It will be interesting to see how well SINA is monetizing Weibo when the
company reports its quarterly results later this month.

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