Renren and Youku Turn to China's Most Prominent Internet Growth Drivers

  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

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According to the China Internet Network Information Center, China has the world's biggest population of internet users with more than 500 million. Based on the rise of the nation's middle class, analysts believe that China's internet market still has room to grow. In fact a recent study from the consultancy McKinsey & Co estimated that 6 million people go online for the first time in the country every month, and predicted the Chinese internet population will grow to 750 million in 2015.

Two prominent growth drivers in China's internet sector are microblogging, and mobile internet. According to a DCCI report issued this summer, China's mobile internet users will surpass the number of PC users as soon as 2013. Already, China has more mobile phone users than PC users.

Meanwhile, the number of Chinese microbloggers has skyrocketed of late, as popular social networks have attracted 40 percent of China's internet users. China's Vice Minister of Industry and Information Technology Liu Lihua said that microblogging played an important role in collecting public opinion.

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.

Last month Renren and MSN China, which runs the online business for Microsoft in China, announced a strategic cooperation between the two companies to offer users a seamless integration of their respective social networking services platforms.

According to Youku, net revenues were RMB197.8 million (US$30.6 million) in the second quarter of 2011, representing a 178% increase from the corresponding period in 2010 and exceeding the high end of the revenue guidance previously announced by the Company by 18%.

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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