On Monday, a Sino-U.S. trade deal cleared the path for China to join the World Trade Organization and opened the door for foreign investments in Chinese Internet companies. Investors celebrated on both Monday and Tuesday. Shares of Chinese destination site/Internet services company China.com (Nasdaq: CHINA) have more than doubled in the last two trading sessions. The stock rocketed nearly 26 percent on Tuesday, gaining 25-13/16 to 127. This development came one day after shares of China.com soared nearly 75 percent, gaining 43-3/16 to 101-3/16.
Investors are bullish because foreign investment in Chinese companies should lead to significant expansion for Chinese Internet businesses. China.com is poised to be a big beneficiary of the expected explosive growth in Internet use in China. According to International Data Corp, the information technology market in China is projected to grow from $9.2 billion in 1998 to $15 billion by 2000. With investors that already include America Online and Sun Microsystems, China.com has a clear leadership position in this emerging market.