Chinese Government Threatens Growth for Renren and Youku

  As market shares continue to grow, companies within China's internet sector have been posting record numbers this year. China's online population is already the world's largest, with millions of Chinese users trying the internet for the first time each month. The growing internet population has become a slight headache for the Chinese Government, however, and there are concerns heightened regulation could slow growth. The Paragon Report examines investing opportunities in China's Internet Sector and provides equity research on Renren, Inc. (NYSE: RENN) and Youku.com, Inc. (NYSE: YOKU). Access to the full company reports can be found at:

www.paragonreport.com/RENN

www.paragonreport.com/YOKU

Several Chinese internet firms could be in for greater government scrutiny as Beijing officials are vowing to punish people who post rumours and falsehoods on the Internet. Users in China must "abide by the law, show self-discipline and refrain from spreading rumors," the spokesman for the State Council's State Internet Information Office said, according to Xinhua News Agency.

Social media sites that are platforms for users to generate content are posing a challenge for China's authoritarian government, which is used to controlling what media tell people. The government has begun issuing warnings about speech on the internet and the need for companies to remove "rumors" and "false news," which are widely seen as code words for criticism.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on China's Internet Sector register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.

Additionally, China's Commerce Minister recently said the government was looking to regulate corporate investment structures that enable domestic companies to list on overseas markets, as China looks to reign in variable structures that allow foreign investors to tap into cash flow from Chinese companies where investment is restricted.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.paragonreport.com/disclaimer.

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