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Mobile media listing frenzy opens Pandora's box

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Investors seeking to cash in on the mainland's growing appetite for mobile-phone ringtones, downloads and multi-media messaging are spoilt for choice, with five companies already vying for attention.

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And the competition for capital is about to heat up, with three more planning to list amid concerns that the additional supply could prove too much for the market to swallow.

On Friday, KongZhong submitted papers for a US$100 million Nasdaq Stock Market initial public offering. This followed a $55 million application by Mtone Wireless in April.

At home, Tencent Holdings has begun marketing its HK$1.55 billion Hong Kong IPO. The company is known for instant-messaging services but Tencent derives the bulk of its sales from wireless value-added services (VAS).

The entrants will join listed internet portals NetEase.com, Sina.com, Sohu.com and Tom Online, which provide VAS products such as ringtones and downloads, along with Linktone, a pure VAS play.

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Market watchers say valuations could come under pressure as the latecomers struggle to attract investor interest.

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