More Chinese Web IPOs To Come

It seems that the BRIC's are partying like its 1999. Tech fever has hit the emerging market nations as a string of Chinese web IPOs have entered the marketplace. Web browser and security provider Qihoo 360 QIHU is the latest of many, including YouTube imitator Youku.com YOKU and E-Commerce China Dangdang DANG, to go public. Online-dating company Jiayuan.com and Renren, owner of China's largest social-networking website, are offering shares next week. There were 457 million internet users in China by the end of 2010. That's huge, considering the United States' has a total population of 308 million. This internet penetration is having dramatic effects on how China's citizens work, shop and play. Online retail sales in China increased 117% annually between 2007 and 2009. With more and more Chinese rising to middle class status, internet usage will only go up from here. For portfolios, the potential is enormous. However, with visions of Dr. Koop.com and the dotcom meltdown still fresh in some investor's minds, a broad strategy may be best. The Guggenheim China Technology CQQQ and the Global X China Technology ETF CHIB are better bets, offer wide swaths of the Chinese internet complex.