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Shanghai - Microsoft Corp.'s online portal MSN.com will launch a China job search service this year to attract young netizens in the world's second-largest Web market, a company spokesman said on Monday.

"We are going to offer a job-hunting service in the next few months, but at the current stage we do not have any detailed information to disclose on this topic," Richard Feng told Reuters.

Industry sources said MSN's China Web site (www.msn.com.cn) is in talks with several local partners, including international and local human resource firms, in preparation for launching the Chinese-language online job search channel.

The move potentially brings the software giant up against heavyweights 51job Inc., ChinaHR.com, controlled by US powerhouse Monster Worldwide Inc., and Zhaopin.com.

Those companies hold the top three positions with a combined 35 percent of domestic market share, previous report has said.

China's online job market was worth an estimated 1.15 billion yuan ($148.2 million) in 2006, up 43.8 percent from a year ago, according to consultancy iResearch.

"It seems likely that MSN is becoming a media company that can compete with other media online in China," said Doug Crets, analyst at Media Partners Asia.

"This seems like a good move, because it incorporates another revenue channel into their model. And a lucrative one."

MSN's China site is a 50-50 joint venture between software giant Microsoft and Shanghai Alliance Investment, a major city investment firm run by Jiang Mianheng.

TARGETS OFFICE WORKERS

"MSN wants to target office workers in China -- a job search service is exactly what they want," said a source close to MSN's China Web venture.

Microsoft's online communication tool, MSN Messenger, has already become part of everyday life for teenagers and young professionals in China.

So far, MSN Messenger has over 20 million users in China, the world's second-largest Web market with around 137 million users.

However, Microsoft has recently met some setbacks in its online services in China, including the resignation of a top executive responsible for the company's Windows Live unit in China late last year.

Earlier this month, industry sources said that Microsoft was setting up a research and development center in Shanghai for its online MSN service, its first such center outside the United States.

"2007 will be a key year for MSN China," said a second source close to MSN's Shanghai-based venture. "You will see more online channels and more content services on the MSN China (Web site)."

Last month, China's largest online travel agent, Ctrip.com, said it had signed an agreement to become strategic partner with MSN China to cash in on the country's growing class of young and affluent consumers looking to splash out on travel.

The two online firms launched an online travel channel last month -- the first new channel launched by MSN China this year.