THE MARKETS

Payment Industry Blooms

As e-commerce shifts into full swing, China's third-party payment sector is receiving a heavy boost.

In 2011, the transaction value of the thirdparty payment industry amounted to 1.78 trillion yuan ($282.5 billion), skyrocketing 57.5 percent from a year ago, said a recent report of the Beijing-based consulting firm Analysys International.

The report also expected the transaction value to maintain rapid growth to reach 2.7 trillion yuan ($428.6 billion) in 2012.

"As competition intensifies, companies are increasingly exploring the emerging mobile payment market and enhancing innovation to lure customers," said Cao Fei, an analyst with the Analysys International.

Alibaba Fares Well

China's online commerce giant Alibaba reported a net profit of 1.71 billion yuan ($271.48 million) in 2011, up 16.6 percent over the previous year. But the firm said its fourth-quarter net profit fell 6 percent from a year earlier, citing the sluggish global economic environment as a major reason.

The Hong Kong-listed company posted annual earnings before interest, tax and amortization of 1.94 billion yuan ($308 million) last year, up 21.9 percent. The growth was based on more than 76.33 million registered users, an increase of 23.5 percent over the previous year.

Looking ahead, Alibaba said it would continue to invest in new businesses and focus on improving standards for trust and safety, following a successful crackdown on fraud across its e-commerce platforms.

It expected a "more balanced, multirevenue stream model" as the strategy shifted away from membership growth and tilted towards improved quality.