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From Precy Dumlao, Opalesque Asia:
The rapid growth in China’s Internet that was sparked by growing disposable income that translates to rising Internet penetration rates, is creating potential opportunities for investors. More importantly, the leapfrogging infrastructure development in China is so improving Chinese migration directly to the web, that experts predicted that the local Internet market could outpace more mature economies, according to the latest study by T. Rowe Price.
But the study, prepared by T. Rowe’s Media & Telecommunications Strategy Lead Manager Dan Marino also warned investors of potential risks in doing business in China, particularly in sudden changes in government policy. Marino told investors that understanding the local market and extensive research are crucial for success.
China’s growing internet market
With an estimated 485 million Internet users, China is the largest Internet user in the world capturing 23% of the world’s total. However, despite its already huge number of users, Internet penetration in China is still considered low. Marino’s study predicted that wire-line users in China could reach up to 800 million by 2015.
The rise of Internet users in China is also encouraging E-commerce. Figures showed that E-commerce sales in China are 40% of U.S. levels ($71 billion in gross merchandise value in 2010 versus $177 billion for the U.S.). This fi...................... To view our full article Click here
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