They said by the end of the website's first day, hits on the site's homepage were over 2 million while more than 28,000 people had signed up as regular users.

"We were flooded with visitors. The numbers went beyond all my expectations. I am still in shock!" said Wu Guping, president of the website.

Strong media backing

So what gives Eastday.com its pulling power?

Rich content is one answer. This is the city's largest news portal. The site offers: breaking news from dozens of Shanghai's print and broadcast media, the latest in municipal news that can affect your everyday life - planned cuts in telephone bills, increases in water fees or changes in mobile phone fees for example; results of public examinations will even be posted here which will save students having to traipse to the education office.

It also has strong backing.

Jointly funded by 10 city news firms, Shanghai Oriental Pearl Co Ltd and Shanghai Information Investment Co Ltd, the website carries the latest news reports from Shanghai's three most popular papers: Jiefang Daily, Wenhui Daily, Xinmin Evening News and two major TV operators in Shanghai. Other local newspapers covering life, entertainment, job hunting and finance news can also be accessed via the site.

Meanwhile the website, which has recently been approved by the State Council, China's cabinet, is co-operating with 300 news firms outside Shanghai headed by Xinhua News Agency and other Beijing-based newspapers funded by central government and ministries.

"Eastday offers news of specific perspectives, scoops and exclusive resorts that cannot be attained from other portals in China," said Wu.

News reports from leading Shanghai daily newspapers may make it into Eastday.com even before they go into print.

"We can extend deadlines to 3:00 am in order to publish tomorrow's headline news from Jiefang and Wenhui. Our users can read the reports before anyone else," he said.

This gives Eastday a big advantage over other profit-seeking portals like Sina.com, Netease.com and Sohu.com, which have to rely on editing, copying or reproducing news from traditional media.

Also, with support from the Shanghai Municipality, Eastday.com can beat other portals in releasing the latest policy changes and other breaking news in Shanghai.

News you can trust?

While unreliable, unauthentic or even fake reports have tarnished the reputations of many on-line news sources, organizers of Eastday say their news can be trusted.

"Our big selling card is that all the news on the Eastday is authentic and authoritative and surfers can be assured it is all completely reliable," said Wu.

Surfers seem happy with these assurances.

"I have registered as a regular user of the website because I can access so much news and information which I know will be reliable, not fake and I will not be cheated," said Ya Kefan, 20, an English major of Fudan University.

Han Zheng, a businessman, agreed.

"It is like Jiefang Daily on-line. I can read authoritative information about business policy shifts in Shanghai. Such tips are non-starters at other portals," he said.

Wu said that Eastday.com will continue to focus on developing exclusive news, information and services catering to local needs.

Eastday subscribers can also vent their anger or complain on the website or they can suggest topics for investigation. The website will pass the tips on to traditional media to help readers get the stories they want.

"The interactive connection will build confidence among our users and help us to discover more scoops," said Wu.

Eastday will co-operate with public information facilities like libraries and bookshops and extend services like culture, tourism, health and entertainment in the city, he said.

"In the future, we are going to launch such interactive services as distant education, on-line medical services and interactive entertainment for households," he said.

Profit a long way off

Wu admitted that the site's newness means it will probably not be making a profit for a long time, adding that the main task right now is to begin generating revenue.

He said the best tool for doing that is on-line advertising.

Wu is confident the website's huge readership will attract advertising from companies who want to market their products and services on-line.

But long-term money-spinners at the site will be electronic business services, according to Wu.

"Customers can book air tickets, theatre tickets and reserve seats, shop at our website for favourite books or access other e-business services via Eastday," he said.

Nevertheless Wu said no hard-and-fast decisions have been made as to what kind of e-business model Eastday should adopt in future.

"It is still an open question. E-business is too hot a topic in China, it is full of speculation. It is no good jumping on the bandwagon," he said.

Wu believes tough competition from other portals in China will not pose a big threat to Eastday.

"It is stupid to think that only by being number one can a website survive in China. China's Internet market is very big and many portals can prosper side by side. They can find a niche," he said.

He said recruiting a talented workforce is a bigger challenge.

"We are in great need of people skilled in software and computer engineering and other high-tech aces," he said.

He said if he has to he will go to Silicon Valley, Singapore, Taiwan or Hong Kong, where high-tech aces abound, to find the right recruits.

Challenges have also surfaced on technical fronts. Surfing at the site can be slow during rush periods.

Wu said the site is now working on a package of upgrades to clear the transmission blocks. Meanwhile, additional network equipment with greater capacity and higher data-transmission speed will be put into use.

But Wu does not deny that holding onto customers as websites increase in China at an average rate of two a day will not be easy.

"Competition is tough it's true, especially for late comers. But Eastday will try to publish scoops - this will be its trump card in future," he said.

But some surfers say government backing is both Eastday's strength and its weakness.

"Government backing means its news will be reliable and authoritative. But it cannot cover some sensitive issues which Sina and Sohu will scramble to make public as fast as they can," said Andy Zhai, a reporter from a computer weekly in Shanghai.