Dangdang and Youku Poised to Benefit from Surging Demand

   After a strong start to 2012, Chinese internet stocks have lagged the market of late as disappointing quarterly earnings results have soured investor optimism on the sector. Despite being up more than 2 percent over the last month, TickerSpy's Chinese Internet Stocks index (CHDOT) lags the S&P 500 by roughly 1.3 percent. The Paragon Report examines investing opportunities in China's Internet Sector and provides equity research on E-Commerce China Dangdang Inc. (NYSE: DANG) and Youku Inc. (NYSE: YOKU). Access to the full company reports can be found at:

www.paragonreport.com/DANG

www.paragonreport.com/YOKU

While higher costs have compressed margins, revenues throughout the industry continue to skyrocket. Ad revenue from China's online video sites surged 99.9% to 6.27 billion yuan in 2011 and is expected to exceed 12.6 billion yuan this year, according to iResearch. Meanwhile, mobile internet in China continues to attract more users. According to Analysys International, revenues from China's mobile Internet services amounted to 86.22 billion yuan in 2011 and the market had 431 million users as of the end of last year.

Online gaming is becoming a significant growth driver in the Chinese internet sector. Analysys International says that from China's online gaming market grew 8.3% quarter on quarter and 28.5% year on year to 10.29 billion yuan in Q4 2011. The number of browser game players in China is expected to grow 36.4% to 75 million in 2012 before reaching 97.5 million by the end of 2014, Analysys International predicts.

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 at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.

Youku Inc. operates as an Internet television company in the People's Republic of China. Its Internet television platform enables consumers to search, view, and share video content across various devices. Earlier this week Youku announced in a press release that it had signed an agreement to extend its successful partnership with m1905.com, a leading online movie site wholly owned by China Central Television's CCTV-6.

E-Commerce China Dangdang Inc. operates as a business-to-consumer e-commerce company in the People's Republic of China. It engages in the sales of Chinese and foreign language books, and music CDs, VCDs, and DVDs through its Website dangdang.com.

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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