BAIDU.COM Inc officially launched its instant message (IM) Hi system yesterday in Shanghai, one of "strategy" steps for China's biggest online search services provider to expand its online community.

Baidu Hi is integrated with a Web page keyword search function, putting it alongside rival products such as MSN and QQ, said Shen Haoyu, Baidu's vice president.

"As a newcomer, we don't aim to compete with rivals. Instead, the IM is a key component for us to establish an online community," Shen said during Baidu World 2008, which was held in Shanghai.

Tencent's QQ and Microsoft's MSN lead the IM market in China, with almost 400 million registered users, according to Analysys International.

As well as IM, Baidu has launched cyber games and online forum services and will have an online auction Website by the end of this year.

The new services aim to improve user loyalty and profitability of the company's core search business, according to Baidu, which has 160,000 clients in China. It has also launched a new service which provides industry research reports, promotion advice and market trend prediction, besides traditional searching.

"Online search has represented the world's trend and people's thinking," said Robin Li, chief executive and chairman of Nasdaq-listed Baidu.