Chinese Net Users Requested 10 billion Searches Per Month

According to iResearch column article by Xingning Zhou, the "Survey of 2007 Third Quarter Search Market in China" indicates, from September, 2007, Chinese netizens requested more than 10 billion searches per month. This is the first time China has surpassed US as the largest search market in search volume. At the same time, the search requests numbered 9.4 billion in the US.

At the same time, domestic search giant Baidu expanded it's market share to 73.6%. As the number of net users in China is increasing rapidly, analysts predict Baidu will go pass 80% mark in search market share. China will soon has the largest internet population too.

The positive interaction between Baidu's search and community products has formed powerful competitive force. That is the true secret behind Baidu's leadership in consecutive years.

Baidu has cultivated the largest interactive community with it's huge search traffic in Chinese search market. The powerful cohesiveness produced by it's community products has solidified , strengthened and energized the strong and rapid growth in Baidu search.

And Baidu sees clearly where the future lays. Starting from October, gaming channel, video channel and finance channel came live one after another. It demonstrated Baidu's broadening in territory as well as rising in user loyalty.

Baidu just announced that they will held "100 degree boiling point entertainment award" in Beijing Jan 12, 2008 and planning for "union member electronic competition" as well as many other web activities. These activities will undoubtedly will push the Baidu 100 points higher each time.

King of the Middle Kingdom

In just released survey of "2007 third quarter search market in China" from iResearch, China has become the largest search market in the world.

In September, Chinese internet users queried search engine 10 billion times, surpassing the amount of searches done in the US in the same period.

Baidu has become undisputed search king in China with more than 73% market share. In the last quarter, over 80% of increased search traffic came from searches on Baidu.

Chibi Delayed, But Perfect World Is Already On Fire

Perfect World's next big game is called Chibi or the Red Cliff. It is based on an ancient story. During the times of the Three Kingdoms, the two weaker Kingdoms joined hands and set a huge fire which burned almost all the ships from then dominant Central Kingdom, Wei. The strategic victory set all the three Kingdoms on equal footing and the beginning of the Three Kingdoms era.

The Chibi game is delayed due to the delay of the movie named Red Cliff. However, Perfect World is already on fire.

In the just announced earning report, PWRD reported a 65% jump in revenue over last quarter. It is an astonishing 14 times over the third quarter last year.

Comparing the two different picutures presented by Netease and Perfect World, it is very convincing that the model pioneered by Giant Interactive and Shanda which charges for virtual items while offering games for free is working very well in China.

The powerful 3D engine and the beautiful scenes created by Perfect World are attracting millions of fans in China. Three of the four games from Perfect World have less than a full year operating history. The future is very bright for this online gaming company.

Ga Giant !

Giant Interactive Start it's first day of trading with big splash. The shares gained almost 18%.


It's not as good as a Perfect World deal. However, it's not bad either considering a market crushing day in the US.

According to Netease tech report, Giant Interactive sold 57,197,423 ADS shares with about $886.6 million collected. Giant will mainly use the money for operational and acquisition needs

The deal made GA's IPO the largest from a private owned company in China.

According to CEO of Giant, Shi Yuzhu, the deal will make 21 people 100 million richer. It will also creates 186 millionaires or multi-millionaires.

A humble Shi claims GA is far from building a solid lead in China's online gaming industry. He likes the industry very much because it's clean balance sheet, simple operations with an already successful model. He'd like to continue to focus on product development and leave operations to other top managers.