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Geng Le, CEO of Blued, a Chinese gay social-networking app, said: "I was surprised that the stock market responded so positively to the news." "At first, we thought it was possible for companies like us to go public only in the US, but now it seems that the domestic capital market is equally open and promising." When asked about the competition from Grindr, Geng said: "I don't worry about it.Grindr will find it quite difficult to enter into China given the sharp cultural differences.

In June, Beijing Kunlun bought a 20 percent stake in United Kingdom-based mortgage lender Lend Invest Ltd for $34 million.

Joel Simkhai, founder and CEO of Grindr, said in a statement: "Our new alliance will allow us to further expand and offer a more comprehensive array of proximity-based services." It is not clear whether Beijing Kunlun will help bring Grindr to China.

To avoid the use of fake accounts, users sign in through Facebook – which is banned in China.

This does not look set to deter Sean Rad, founder and CEO of Tinder, who told CNBC that China was definitely a market he wanted to be in. There are a lot of sensitivities around entering that market, but we've definitely done a fair amount of due diligence and we do have plans to enter the Chinese market," Rad told CNBC."I wouldn't say we're close…I would say that within the next year we will definitely have a presence in China."U.

Chinese Internet game developer Beijing Kunlun Tech Co has purchased a controlling stake in US gay dating application Grindr to broaden its product portfolio and add new revenue streams.

Beijing Kunlun paid million in cash for a 60 percent share in New Grindr LLC, which values the six-year-old startup at 5 million."Most gaming enthusiasts are male users and the gay social-networking site offers a big pool of potential foreign consumers for Beijing Kunlun," he said.The deal came as the country is undergoing a rapid change in public attitudes toward homosexuality and a number of mobile apps are emerging to meet the group's social networking demands.But to make this move, Tinder would have to lose its current link to Facebook.New York-based Jeremy Edwards, lead analyst at IBISWorld which produces market research on global dating services, said that Tinder's Facebook ties made China expansion plans difficult."Plus, most of the dating apps in China have been tailored for that market specifically," he told CNBC."So it's difficult to tell how an app like Tinder would be received over there."In China and beyond this could mean new partnerships with local operators, according to Jack Kent, mobile and media industry analyst at research firm IHS in London."One downside (of being linked to Facebook) is that it limits the audience and excludes those not on Facebook," he told CNBC.

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