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Microsoft's MSN China Teams With Sina To Challenge Tencent

MSN China has teamed up with Sina to challenge the dominance of Tencent Holdings in the Chinese internet and instant messaging markets.

According to Bloomberg, the Shanghai MSN Network Communications Technology, which is 50 per cent owned by Microsoft, will collaborate with Sina to offer instant messaging, blogs, mini-blogs and mobile phone content services to Chinese web users.

In a joint statement, the two companies said that the partnership will involve the linking of some instant messaging and blogging features currently offered by both MSN China and Sina. For example, users will be able to sign-in to Sina's Twitter like micro-blogging service using their Windows Live ID.

Sina has the third largest web traffic in China and is ranked behind Chinese search giant Baidu and Tencent's QQ instant messaging service, which currently holds a massive 77 per cent share in the Chinese instant messaging market.

In comparison, MSN China holds only 4.2 per cent of the market.