China Mobile, Xinhua to launch search firm

China Mobile (CHL.NYSE, 0941.HK) and state news agency Xinhua are planning to launch a mobile search firm, the Financial Times reported. Xinhua characterized the move as one that would serve the "Party and the state, thoroughly protect the national interest, safeguard China’s information security, strengthen the establishment of a public opinion front in the new media and broaden the domestic and overseas propaganda influence and the public opinion guidance capability of the Chinese mainstream media." Analysts do not expect the search firm to have a material impact on China’s search market, which had revenues of US$393 million in the second quarter of this year. Baidu (BIDU.NASDAQ) remains the market leader, with Google (GOOG.NASDAQ) in second place.