Mobile commerce application

We view mobile commerce as a growth area for 2013E. Given the still-low penetration rate, Chinese companies are focusing on driving online shopping, and part of the efforts has been extended to building smartphone and tablet applications. Major companies with online transactional capabilities are clearly very focused on mobile. Take Ctrip for example, its hotel reservation on mobile devices have exceeded 10% of the total volume in 4Q12, compared to a not meaningful level in the first half of 2012. Tencent’s flagship mobile commerce application is the QQ Buy platform, which is synchronized with buy.qq.com, and supports mobile payment through Tenpay.