The growth represented an increase of 18.4 percent over the same period last year in a market that still has vast potential for further growth, the China Daily said Friday, citing a survey released by the China Internet Network Information Centre.

``While more than 67 percent of the US population, about 135 million, have access to the Internet, in China the percentage is only about 7.9 percent,'' it said.

The media previously predicted 120 million Chinese would be surfing the Net by the end of the year as computers find their way into more homes and telecoms networks grow.

Nearly 20 percent of China's Web surfers had shopped online, and Internet-based transactions in the first half could total around 10 billion yuan (HK$9.58 billion).

``Most of China's Internet users are well educated and have hefty purchasing power,'' said analyst Lu Weigang.

The burgeoning online gaming market proved especially lucrative, with Internet gamers spending four billion yuan on virtual equipment for their online alter-egos in the first six months.