China's Internet Population Expected to Surge to 800 Million Users by 2015

NEW YORK, NY--(Marketwire - Jan 11, 2013) - Chinese equities have had a good start to the year as various economic data have pointed to a recovery in China's economy. The Bloomberg China-US 55 Equity Index, which tracks the performance of the top 55 Chinese equities trading in the U.S., has gained 2.5 percent so far in 2013. The Paragon Report examines investing opportunities on Chinese Internet stocks and provides equity research on Baidu.com, Inc. (NASDAQ: BIDU) and SINA Corp. (NASDAQ: SINA).

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First half figures from the China Internet Network Information Center (CNNIC) showed that the nation's internet population stood at 538 million in 2012, a year-over-year increase of 11 percent. While that figure may seem substantial, the internet penetration rate was estimated to be at just 39.9 percent, leaving significant room for growth.

China's Ministry of Industry and Information Technology recently predicted China's internet population to reach 800 million users by 2015. Internet penetration is expected to be driven by mobile internet access as the country currently has over 1 billion mobile phone users.

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Baidu is the leading Chinese language Internet search provider. According to CNZZ, a Chinese traffic stats company, Baidu holds a 72.97 percent market share of China's search engine market. Shares of the company have surged nearly 12 percent in 2013, after losing approximately 14 percent in 2012.

Sina's digital media network of SINA.com (portal), SINA.cn (mobile portal) and Weibo.com (social media). The company and AutoNavi Holdings Ltd, a leading provider of digital map content and navigation and location-based solutions in China, have recently launched a location-based social networking service platform.

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