JPMorgan's Internet analyst Imran Khan and his team released a report on Internet sector which has a chapter on China's Internet industry and also reviews Chinese Internet stocks.(tip by Techcrunch) The chapter on China are mainly based on the data from CNNIC's latest report on China's Internet development, it discussed the trends of online advertising, search and online gaming market.
Some key takeaways are as follows:
- JPMorgan estimates a 50% growth in online advertising market in China in 2008, driven by 2008 Beijing Olympics in the near to medium term.
- The branded advertising market will witness a 38% YoY growth rate in 2008,
- while the PPC search market enjoys a higher growth rate of 82% to $562 million. Baidu will remain dominant player to take around 65-70% market share.
- For 2008, JPMorgan forecasts a 37% YoY growth in the MMORPG segment and 43% YoY
growth in casual games.