According to the report, China’s internet penetration continues to rise, from 564 million users in the last report to 591 million by the end of June 2013 an increase of 2% penetration.

However the rate of increase in desktop or laptop users is completely overshadowed by that of mobile users.

Over 70% of the new internet users use mobile phones for access, and it is the major source of the internet penetration increase. The total number of mobile internet users now sits at 464 million, covering 78.5% of the total internet user base.

Taking a closer look at usage, the report examined the 6 months change on various internet applications:

Compared with other applications, group buying has experienced the biggest increase, as 17.1% of all internet users have identified themselves as having conducted qualifying transactions in the last 6 months, a marked increase of 21.2%.

Online travel booking took second place, with a solid 18.7% increase over the six month period, but has slowed down somewhat in comparison to the last report’s astonishing 165.4% YoY increase.

Close examination of the different types of travel booking activities suggests that the biggest change is in train booking, with hotel booking experiencing a slight increase. Flight booking however remains largely unaffected.

The full report contains further information on Chinese internet user demographics, income groups, and more, and is attached separately.