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You Can't Afford to Ignore China Again

Robert Hsu, Editor

The Number-One Internet Market in the World

Currently there are 338 million Internet users in China–number-one in the world but with a penetration rate of only 25.5%. The number of Internet users in China is growing by over 20% a year. The colossal size and rapidly growing Chinese Internet market presents tremendous opportunities for online companies in China. And the success of sites like Expedia worldwide shows that travel reservations is a business highly suitable for the Internet.

Online travel is just starting to take off in China. Only about 10% of China's travel plans are booked online. So online travel in China clearly has tremendous room for growth.

What's interesting is that along with more Chinese traveling, they're also changing their traveling habits. Prior to the rise of the Chuppies (China's growing yuppie population), most Chinese tourists traveled in groups.

But today, most Chuppies are too sophisticated and confident to travel in large tour groups. In fact, an overwhelming 97% of the Chuppies that I surveyed prefer to travel independently instead of with a tour group.

China's leading online travel company, Ctrip.com (NASDAQ: CTRP), caters to such travelers. Established in 1999, Ctrip is the leading online consolidator of hotel rooms and airline tickets in China. It currently dominates the online travel industry with a 60% market share in China's travel market.

Like many of our other China Strategy companies, Ctrip is managed by young Chinese entrepreneurs educated and trained here in America. James Liang is a 35-year-old Georgia Tech grad who learned the software business at Oracle, and then turned a $250,000 investment into a $1.3 billion online travel powerhouse in less than seven years. Now personally worth over $100 million, Liang and his team built Ctrip into one of China's best-known travel brands.

Ctrip is a play on three key trends associated with the rise of Chuppies: the increase in tourism, growth of the Internet and travel information databases and the popularity of independent travel.

Overall, Ctrip is a great way to profit from China's booming online travel industry. Shares are already up around 100% this year with more to come!

To learn more about the other Chinese Internet companies that will benefit from the growing number of Internet users in China join China Strategy today.

China Strategy

Miracle is a strong word, but it’s the right word to describe what’s happening today in China. As this once-great land modernizes and shifts to a market-driven economy, the staggering economic growth taking place there will continue for the foreseeable future. The profit potential for investors who truly understand what’s happening inside China is equally staggering.

That’s why Robert Hsu made it his mission to help you profit from China’s economic miracle. In his China Strategy service, you’ll receive a monthly issue, weekly updates and Flash Alerts to keep you abreast of everything that’s happening in domestic and foreign markets. With this service, Robert will help you profit by bringing you the real China—the China that he knows first hand by reading Chinese newspapers, visiting the country, and his on-the-ground network of analysts. He’ll also protect you from the risks that cost many unwary investors dearly, by providing you with specific buy and sell advice on only the best-positioned companies set to profit from the China Miracle.

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