China Watch Blog

China Watch Blog has learnt that investment in China’s Internet advertising is predicted to grow by 32.1 percent annually over the next five years, according to a Tuesday report by PricewaterhouseCoopers.

Total spending on online advertising is expected to hit $31 billion by 2016, the global consulting firm’s report said.

PwC made the forecast based on China’s fast economic growth, as well as improved access to the Internet via mobile phones.

China currently has more than 500 million Internet users, with more than 300 million accessing the Internet with their mobile phones. Government data showed that the number of mobile phone users hit a record high of 1.03 billion at the end of April.

The report also predicted rapid spending growth in the entertainment and media industries during the next five years. It said total spending in these industries will hit $192.5 billion by 2016.

The report said China became the world’s third-largest entertainment and media market in terms of spending in 2011, with investment that year hitting $109 billion.

China Watch Blog has learnt that Shanghai has overtaken Beijing to become the most expensive place to live on the Chinese mainland for expats and the 16th most costly of 214 cities across the globe, according to rankings released by US human resource consultants Mercer.

Many Chinese cities are becoming more expensive due to a stronger yuan, soaring accommodation costs and steadily rising prices last year, Mercer said.

Shanghai is one place above Beijing on the global ranking list, with the cities climbing five and three places respectively from a year earlier.

Shenzhen, an economic center in southern China, rose to 30th place from 43rd in 2011.

Guangzhou City climbed seven places to rank 31st.

Other Chinese cities where the cost of living has risen sharply were Qingdao, Tianjin, Shenyang, Nanjing and Chengdu. All below the top 100 last year, they have now made it into 2012′s top 100.

Shanghai and Beijing also overtook South Korean capital Seoul (22nd, down three places) among major Asian cities.