Online gaming in China: Intangible value

Changyou is making a fortune selling items in a virtual worldPERHAPS it should not be a surprise. In the midst of a global capital shortage, the first company to list this year on New Yorks NASDAQ exchange not only needs no money; its source of profit is receiving cash for items that do not exist.Changyou is a three-year-old online-gaming business being spun out of Sohu, Chinas second-largest internet portal. The deal was due to be priced on April 2nd, as The Economist went to press, in a nostalgic reminder of what the stockmarket used to look like. At the top of the expected price range Changyou will be valued at about $820m, after a special distribution of $100m to its parent. The opening price may be higher still, given strong demand. ...