A ragged man stands idly with a board on which is written the word 'beg'. But people just keep on passing him by. "Why not add a dot com after it?", someone suggested. The man's business immediately soared after the inspiration. Okay, then how about adding an "e" in front of the line? Soon the man became sought-after as a venture capital investor.
This is only a joke. However, unrealistic investors believe almost everything related to the Internet means wealth.
In the United States, the tech-laden NASDAQ captures America's prevailing mood of optimism - the confidence in technological superiority and the romance of instant wealth.
In 1999 the NASDAQ composite index rose an astounding 86 per cent.
Now the ripple effect of the so-called new economy has extended its impact to China.
Internet economy was a popular theme at the annual conference of the National People's Congress and Chinese People's Political Consultative Conference, which concluded a few days ago.
Many believe that the Internet opens new channels in the history of economic development and will create new opportunities. E-commerce is the trend of the future.
"It will be dreadful if you miss the time." said NPC member Wang Xuan, who is president of the Institute of Computer of the Chinese Academy of Sciences.
Enterprises that do not log on are waiting for death, he added. Many are calling for urgent legislation to pave the way for the smooth and fast development of the Internet economy.
But is China prepared to embrace the new economy?
"China is still far from the new economy. Speculation on Internet stock is risky," says Wu Jinglian, an economist, pouring cold water in the increasing Internet fever.
He calls for attention to be paid to the Internet bubble in China.
At the beginning of March, there were chaotic scenes in the streets of Hong Kong as hundreds of thousands of investors jostled to submit applications for shares in Richard Li's new China Internet portal, Tom.com.
Many of them do not even know what business Tom.com is involved in, nor its profits or prospects. But everyone believes they can make money from the Internet.
In the Chinese mainland stock market, Yi'an Tech became the first one to reach 100 yuan (US$12) per share soon after the announcement of new investment in the high-tech industry. Speculation on the Internet is more like playing in a casino than a reasonable investment.
The old investment rules have been thrown out. The old rule of buying solid stocks at reasonable prices and getting rich as companies' profits rise is obsolete.
Internet companies do not need to reap profits before they issue IPO (initial public offering). Many of the start-ups have no profits, few staff and little in the way of a business plan.
Some more traditional stocks are being jilted. It is not because they do not make money. They are being dumped because they are old stories. People need to make up today's fairy tales.
There is nothing wrong with the Internet. The question is how we can bet a fortune without the solid development of the industry.
We should adopt a more pragmatic attitude on the way to pursuing a new economy.
In a net time where everybody rides on an idea seeking an instant fortune, long-term healthy development is essential.
(China Daily)
