Favorable Fundamentals Drive Baidu and Youku

   China boasts the world's largest number of internet users, and given the nation's strict censorship laws which minimize competition, companies such as Baidu and Youku were considered promising growth stories. The Bedford Report examines the outlook for companies in China's Internet Sector and provides stock research on Baidu, Inc. (NASDAQ: BIDU) and Youku.com, Inc. (NYSE: YOKU). Access to the full company reports can be found at:

www.bedfordreport.com/BIDU

www.bedfordreport.com/YOKU

Reports from the Chinese Academy of Social Sciences (CASS) claim that there has been a 41 percent drop in the number of websites over the last year, with 1.91 million websites left at the end of last year. Experts believe tighter regulations and the blocking of sensitive forums have contributed to the decline.

China had already blocked websites such as Facebook, YouTube and Twitter, and in the aftermath of the "Jasmine Revolution" that swept across much of the Middle East, Chinese officials have tightened online regulations even more.

www.bedfordreport.com releases investment research on the Chinese Internet Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

With 457 million online at the end of 2010, China already claims the largest number of Internet users in the world and studies show that the number of users continues to grow at a rapid pace. Brokerage CLSA expects that number to increase to more than 800 million by 2013, while a recent study from the consultancy, McKinsey & Co estimated that 6 million people go online for the first time in the country every month.

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