Revenues of listed Internet firms up in Q2

Updated: 2011-09-17 13:52


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BEIJING - Listed Chinese Internet companies reported surging revenues in the second quarter, raising hopes for a renewal of global investors' confidence in China-concept stocks, according to a latest report by a consulting agency.

A total of 37 major listed Chinese Internet companies saw their combined revenues up 38.7 percent year-on-year in the second quarter, China Securities Journal quoted the Beijing-based China Venture as saying in its report.

That was a higher growth than the 36.7 percent level in 2010, said the report.

Among those companies, revenues of online video-sharing companies jumped 118.4 percent year-on-year, followed by a 68.6 percent gain by social networking websites.

Expanding income has fueled venture capital and private equity investment in the sector, with a record high of US$3.49 billion raised in the second quarter, said China Venture.

The figures came after a wave of heavy short-selling of China-concept stocks on the American stock market in the second quarter.

While the US stock market used to be a major destination for initial public offerings (IPOs) of Chinese firms, the number of IPOs by Chinese companies there was down to zero in July.

If Chinese Internet companies continue to post robust results in the third quarter, investors' enthusiasm may be boosted again and listing of Chinese Internet firms on the US stock market is likely to resume in the fourth quarter, said China Venture in its report.

In the second quarter, net profits by listed Chinese Internet enterprises slowed slightly to a 34.6 percent year-on-year growth, compared with 36.2 percent last year, according to the report.

China has the world's largest Internet user population, with 485 million Internet users at the end of June.