Comment: China will be the world's largest mobile internet market

First Venture securities Wenjie China Internet Network Information Center CNNIC released the 27th China Internet Development Statistics Report, as of December 2010, China's internet users reached 457 million, compared to the end of 2009, an increase of 73.3 million people, an annual increase of 19.1%, Internet penetration reached 34.3%, up 5.4% from 2009.　　Among them, broadband Internet access to the user size of 450 million, Wired (fixed network) users of the broadband penetration rate reached 98.3%. In 2010, Internet users averaged 18.3 hours a week on average, and 2.6 hours a day on average. In all kinds of Internet applications, business applications in the rapid development in 2010, compared to 2009, online shopping user growth of 48.6% per year, is the fastest user growth applications.　　Online payments and online banking growth also reached 45.8% and 48.2% respectively. Social applications also maintain a faster pace of growth, with 33.7%, 29.5% and 33% subscribers per year for social networking sites, instant messaging and blogs.　　But entertainment application user's scale growth is relatively small, among them network music, network game and network Video's user annual increase is 12.9%, 15%, 18.1% respectively. Weibo and group buying were widely accepted in the 2010 as a new network application. Weibo users reached 63.11 million, accounting for 13.8% of Internet users, group purchase users reached 18.75 million, accounting for 4.1% of internet users. We expect a further increase in the number of users, especially active users, in 2011, while revenue models such as advertising marketing will begin to try.　　The entry threshold is not high in 2011 will face the fittest industry integration, will gradually appear some industry leaders. China's mobile internet users up to 303 million, compared to the end of 2009, an increase of 69.3 million people. The proportion of mobile internet users to all Internet users increased from 60.8% in the end of 2009 to 66.2%.　　Only mobile internet users have 42.99 million, accounting for 9.4% of the total number of Internet users. The number of mobile internet users in China is already equivalent to the U.S. population, and the number continues to grow rapidly.　　In the global trend from desktop Internet to mobile Internet, China has conditional surpasses in terms of user base, becoming the largest mobile Internet application market in the future. In mobile Internet applications, currently, instant messaging, news, search is in the top three utilization rate.　　With the popularity of smartphones and 3G, we expect the future of mobile Internet applications will be more diversified, news, games, animation, microblogging, location services, etc. will likely become a super application on the mobile web. In the listed companies, we recommend extension information (anime), Guangdong Media (News), Sina (Weibo).