Foreign investors are finding ways to circumvent Beijing's strict regulations banning foreign investment in China's Internet sector.
Australian-listed ViaGold Capital has reportedly secured a Chinese Internet services provider (ISP) licence through a complex share transfer arrangement, according to sources close to the company.
Sources say ViaGold, an investment holding company, has set up a mainland-registered company as a vehicle to acquire an equity stake of more than 70 per cent in a Chinese ISP licence-holder.
'Foreign firms are not allowed to apply for a mainland ISP licence so we have to find other ways to deal with it,' a source close to the company said.
ViaGold is also entering into a venture with its associate company, Culturecom Holdings. Also, the mainland ISP provider is to develop digital Internet access services for non-English speakers in the mainland.
The service, expected to launch in Beijing this month, enables users to search for Web sites by keying in numbers.
ViaGold is engaged in information technology, travel portals and property development.