Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Friday Stock Market CRASH Following Israel Attack on Iranian Nuclear Facilities - 19th Apr 24
All Measures to Combat Global Warming Are Smoke and Mirrors! - 18th Apr 24
Cisco Then vs. Nvidia Now - 18th Apr 24
Is the Biden Administration Trying To Destroy the Dollar? - 18th Apr 24
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How to Play China's Wired for Profit Internet Boom

Companies / China Stocks Apr 11, 2008 - 12:08 AM GMT

By: Money_and_Markets


Best Financial Markets Analysis ArticleIt's no surprise that computers, video games, cell phones, and the Internet have become a fact of modern life in America. After all, we live in a very wired country.

But you may be surprised to learn that we aren't the most wired country in the world.

Recent numbers from the well-respected BDA Research group show that China has just leapfrogged over the U.S. and now has more Internet users than any other country in the world.

Yes, China had 210 million Internet users at the end of 2007. And that figure is expected to hit an astonishing 280 million users by the end of this year because they're adding around 200,000 new users each and every day.

A number of companies are poised to cash in on the Internet boom in China, but I've whittled the roster down to just ten that offer the greatest profit potential to investors. Today, we'll take a hard look at this A-list.

First off, however, let's talk about the enormity of this mega-trend ...

China Has Only Scratched the Surface of Its Wired Potential

There are 228 million Chinese Internet surfers right now. That translates into only a 16% penetration rate, well below the global average of 19.1% and the U.S.'s whopping 69.7%.

The Internet boom may be mature in the U.S., but has a long ways to grow in China!

Crunching the numbers is exciting, but let's drill down on the details. In order to understand WHY this boom is happening now, you must first understand the role of the Internet in China.

With nearly 200,000 new users coming online daily, internet cafes have exploded in popularity across China.
With nearly 200,000 new users coming online daily, internet cafes have exploded in popularity across China.

Chinese youth don't watch much TV. The reason is that Chinese television is controlled by the Communist Party and its programming is more boring than watching paint dry. That probably explains why the average Chinese youth spends more time (20 hours per week) on the Internet than the typical American youth (12 hours a week). And that's why advertisers who want to reach the free-spending Chuppies (Chinese yuppies) are using the Internet and cell phones to reach their target audience.

That, of course, has some very important implications for investors. Any businesses that are successfully tapping into this booming audience are going to make a mountain of money and enrich their shareholders. Here are ...

Ten Chinese Companies Cashing In on the Internet Boom

There are actually over 100 Chinese stocks that are traded on U.S. exchanges so investing in shares of China Mobile, for example, is just as easy (and cheap) as investing in Verizon or Sprint Nextel. The following A-list of 10 "wired" Chinese companies' shares trade in the U.S. on the New York and Nasdaq stock exchanges.

1) Air Media (AMCN) operates digital TV screens that display advertisements in airports and airplanes. China saw its retail spending grow by 17% in 2007 and advertisers will undoubtedly spend accordingly to capture those dollars.

2) (BIDU) is the Google of China. BDA estimates that China's online advertising market reached $1.3 billion in revenue in 2007, while U.S. Internet ad spending was expected to reach $21.4 billion in the same period, according to New York-based research company eMarketer Inc.

3) China Mobile (CHL), with 360 million subscribers, is not only the largest cell phone company in China but in the world.

4) (CTRP) is the largest and most trusted online travel agency in China.

5) Focus Media (FMCN) has hundreds of thousands of flat-panel television displays placed in high-traffic areas all around China: elevators, karaoke parlors, golf country clubs, auto shops, banks, pharmacies, hotels, airports, supermarkets, and convenience stores.

6) Linktone (LTON) delivers "value added" wireless services for cell phones like ring tones, screen savers, animated cartoons, text messaging services, and news.

7) Netease (NTES) delivers Internet-based video games that are wildly popular with young Chinese males.

8) (SINA) is an Internet portal company that hosts the most popular blogs in China. Young Chinese girls, in particular, swarm to Sina's blog to keep track of famous Chinese celebrities.

9) Shanda Interactive Entertainment (SNDA) also offers online video games, including the popular Dungeon & Dragons, as well as wireless games such as chess.

10) The9Ltd (NCTY) is another online video game company and its World of Warcraft is the most popular game in all of China ... by far. World of Warcraft is so popular that the Chinese government passed a law restricting its play to no more than 4 hours a day. Talk about dedicated customers!

I believe all ten of these companies have great long-term potential, but am not advocating that you rush out and blindly start putting in market orders. As always, timing is everything. Most of these companies are a little too rich for my blood so I'm patiently waiting for them to come down before jumping on board.

Bottom Line: I am absolutely convinced about one thing. There is some huge money to be made by investing in the country with the biggest pool of dedicated Internet junkies in the world: China!

Best wishes,


This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit .

Money and Markets Archive

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in