SOURCE: The Bedford Report

The Bedford Report

August 04, 2011 08:16 ET

Government Regulation Causes Sina and Sohu's Traffic to Skyrocket

The Bedford Report Provides Equity Research on Sina & Sohu.com

NEW YORK, NY--(Marketwire - Aug 4, 2011) - Strong regulation and censorship has caused the number of active websites in China to drop significantly in the last year. The decline in the number of websites has led to reduced competition for companies such as Sina and Sohu.com, which has resulted in more traffic to their websites and soaring revenues. The Bedford Report examines the outlook for companies in China's Internet Sector and provides stock research on Sina Corporation (NASDAQ: SINA) and Sohu.com, Inc. (NASDAQ: SOHU). Access to the full company reports can be found at:

www.bedfordreport.com/SINA

www.bedfordreport.com/SOHU

Reports from the Chinese Academy of Social Sciences (CASS) claim that there has been a 41 percent drop in the number of websites over the last year, with 1.91 million websites left at the end of last year. Experts believe tighter regulations and the blocking of sensitive forums have contributed to the decline.

China had already blocked websites such as Facebook, YouTube and Twitter, and in the aftermath of the "Jasmine Revolution" that swept across much of the Middle East, Chinese officials have tightened online regulations even more.

The Bedford Report releases investment research on the Chinese Internet Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

In recent months SINA Corporation has boosted expenses. SINA is expected to launch a service comparable to Twitter that will be available globally by the end of the year. SINA's Weibo micro-blog already has an advantage in China with Facebook, Twitter and YouTube all blocked by the government.

Earlier this week Sohu.com announced that its second-quarter net income rose 32 percent, beating consensus analyst estimates, thanks to higher revenue from online advertising and games. Revenue rose 36 percent to $198.7 million from $146.1 million.

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