Rivalry to intensify with listing

PUBLISHED : Thursday, 16 October, 2003, 12:00am
UPDATED : Thursday, 16 October, 2003, 12:00am

Competition is expected to intensify between mainland online game operator rivals NetEase.com and Shanghai Shanda Networking, which plans to join the Nasdaq stock market early next year.

Shanda, the mainland's No1 online games operator announced earlier this week that it was hoping to raise US$300 million to $500 million from an initial public offering in a move which follows NetEase on to the tech-heavy index.

An analyst with a European brokerage said Shanda was big enough to compete with its gaming rival.

'[Shanda] can definitely compete with NetEase because it is actually bigger' with 150 million users at the end of last month compared with 127 million for NetEase, he said yesterday.

A Shanda spokeswoman said: 'An overseas listing is always on our business agenda.'

The four-year-old portal reported a profit of US$25 million for last year.