Tencent Holdings (ticker: TCEHF.pk), which provides a successful instant-messaging (IM) product in China is gearing up to challenge Alibaba/Yahoo and eBay Eachnet in China's online auction space. Tencent's Chief Strategic and Investment Officer Martin Lau is empowered by Yahoo's (ticker: YHOO) Alibaba investment. Key quotes from management's Q2 2005 earnings results conference call:

On Plans for an Online Auction Business

....in terms of the CVC (Editor: C2C or consumer-to-consumer) initiative....

....recent events in the market are actually very exciting, because it does validate our view that the market is going to grow very significantly over the long run and people are willing to put in a lot of dollars to basically cultivate and evolve the market. Now, we think that the trend (ph) market is actually large enough, and that consumer tastes are diverse enough such that it can actually support a number of different CVC (Editor: C2C) platforms within China. So we're not particularly concerned about the increased - the investment in the market, and frankly we felt that with more and more investment put into cultivating this market, actually, you can in fact grow in the market which will benefit us.

....there are different segments in the market, and I don't think there
is a problem for different operators to coexist in the market.

....we are....not going to be putting a lot of money for advertising and marketing, but really develop the functionality so that we can actually very easily cater to the needs of our users and attract our users to use our CVC (Editor: CVC) services.

TCEHF chart.

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