Chinese mainland's Internet population rose 17 percent in the second half of last year from the previous period, according to a nationwide survey released Thursday. It also showed that the country's Netizens were getting richer.

As of the year end, China had an online population of 79.5 million, a 16.9 percent increase from June 30.

Web-linked computers rose 20.1 percent to cover 5.17 million sets in the period in China, according to the China Internet Network Information Center.

The center, which operates under the Ministry of Information Industry, conducts a national Internet development survey each January and July. It defines Internet users as people who surf the Web for at least one hour each week.

"Compared with the average 30 percent six-month growth rate of the online population in recent years, the growth in the second half is moderate," said Yang Weiqing, an analyst at IResearch Inc, a Shanghai-based Internet consulting firm.

"But taking into account the big base, the growing number is considerable."

The good news for Nasdaq-listed Chinese Websites, such as Sina Corp and NetEase.com Inc, was that the figures of the report indicated that Internet users now had a higher income.

The proportion of Internet users with no income dropped to 10.4 percent, 6.1 percentage points lower than the previous CNNIC report released in July.

Those with a monthly income of more than 3,000 yuan (US$361.45) now accounted for 10.5 percent, 3.9 percentage points higher than the previous figure.

Only two years ago, the Chinese Internet economy was called an "eyeball economy," meaning those Websites could attract millions of visitors but never realize concrete revenue.

At that time, most surfers were university students and young people with limited incomes.

"These figures show that Chinese online users have much stronger purchasing power at present to enjoy online services," analyst Yang said. "That will create big business opportunities for related companies in the country."

Those companies include online auction house Website EachNet.com Network Information Services Co Ltd, the country's equivalent to eBay Inc, and Ctrip.com International Ltd, which provides air and hotel ticketing services.

Beijing Zhuoyue Information & Technology Co Ltd, a Beijing-based company which operates online retailer joyo.com, is another.

"Chinese people are used to paying for online services after an Internet company has set up good logistic, distribution and online credit system," said Sun Weijia, an analyst hired by Analysys International.

"Improvement in these factors has given Chinese customers more confidence to buy products or services through the Internet."

IResearch estimated that the market size of China's online services - including short messages, cyber games, paid e-mail and online advertising - reached 7.45 billion yuan last year, 136.5 percent higher than 2002.

The respondents to CNNIC's survey, which was conducted both online and offline, were aged between 18 and 60. The survey had a margin of error of less than 3 percent.

The government-run CNNIC surveyed more than 60,000 people in 31 provinces on the mainland via telephone, Internet or in personal interviews.

(Shanghai Daily January 16, 2004)