The Wall Street Journal reported that RenRen’s (NYSE:RENN) shares spiked more than 50% on the NYSE over the past two days, piggy backing off the monstrous valuation set for Facebook’s prospective IPO. It last closed at US$5.55, bringing its market cap to US$2.18 billion.

RenRen is of course China’s Facebook. I’ve heard stories where, the first version of Facebook even took the source code that said “A Mark Zuckerberg Production”. Nothing is off limits in China.

Facebook has been the most hotly anticipated internet IPO since Google in 2004. Its valuation, rumoured to be in the US$75-$100bn range has created frenzy, with reports of early employees and investors set to make large windfall gains, such as wealth advisor Devish Makan. Such frenzy has lead investors to believe that if RenRen is China’s Facebook and China is sitting on top of a very large and growing internet user base, RenRen must be gold.

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Jason Lim

Jason is an Australian born Chinese living in Beijing, specializing in entrepreneurship, start-ups and the investment eco-system in China, especially in the tech and social area.