Internet firms catch international investors' eyes

Solid earnings outlooks put spotlight on lesser-known mainland companies

Investors are driving up valuations on Chinese Internet companies as an almost threefold surge in Alibaba Group Holding Ltd's profits buoyed the earnings outlook for the industry.

Online companies including Vipshop Holdings Ltd, a fashion retailer, and YY Inc, a social entertainment website, have led gains this year on the Bloomberg China-US Equity Index. The gauge, with half of its members focused on Web business, trades at 18 times forward earnings, near a four-year high reached July 28 and up from a multiple of 11 in February.