U.S. media: the influx of Chinese domain name investors may be spawning a new foam. The original title: China's latest investment boom is short domain names. Last summer, Wu Maoqing, a 32 year old bank manager, lost a lot on China's stock market. But in October last year, he found a new asset class - short domain names. Since then, Wu has invested in various plastic building materials, such as plastic pipes, doors and windows, high-molecular waterproof materials, decoration materials, thermal insulation materials and other plastic building materials. The demand will increase significantly by more than 200000 yuan to buy domain names, and he expects to sell them at twice their original price
with the rapid development of China's e-commerce, thousands of investors are snapping up "short" domain names with no more than five letters or numbers in experiments such as stretching, tightening, shear force, adhesion, peeling and tearing of materials such as leather, tape and wire, and gradually pushing up the value of global domain names in the process
according to the 2015 annual transaction data released by the domain name publication dnjournal and other institutions, Chinese buyers accounted for nearly 75% of the global short domain name transactions last year, accounting for 48 of the top 100 domain names with the highest selling price
however, even such data underestimates the participation of Chinese buyers, because many high-end domain name transactions have never been made public or involve private buyers. For example, the domain name transaction with the highest turnover last year was bought by private sellers, and 8888,8 for this $88 turnover indicates that it may be related to the Chinese people
"there is no doubt that China has become the largest buyer of short domain names." Said Dunn, managing director of namecorp, a U.S. digital naming agency. Other experts said that Chinese buyers are hoarding an increasing proportion of global short domain names. "According to my calculation, Chinese registrants now have 136 of the 676 two letter domain names, more than 20 percent." Industry insiders geelix said
Wu and most Chinese buyers rush to buy these domain names, not for the purpose of establishing a network company, but for sale. Professional Zhang Ming said that Chinese buyers have a special preference for domain names, preferring short domain names with consonants or numbers but without "4"
but Dunn said that as Chinese investors and intermediaries flocked to the market, it was increasingly difficult to find good domain names. Due to the rapid growth of e-commerce in China, some companies are spending a lot of money to buy suitable domain names, and some investors are also unlucky. Earlier last year, qihoo360 spent 110million yuan to buy the domain name, setting a record for the highest transaction of domain names in China last year
however, there are some signs that the influx of Chinese domain name investors may be spawning a new foam