Shanda (SNDA) is rumored to have set up a branch office in Chongqing last week in order to target the Chongqing and Guizhou markets for Internet cafes.

According to local media, some of Shanda's top management are in Chongqing this week to prepare for the announcement of this new office.

Shanda is planning to set up 300 themed Internet cafes in Chongqing by the end of the year. Insiders say the company will market the new locations by providing game cards with better discounts.

If Shanda's service goes well in the city, it will probably arrange a game development studio there. As China's largest population center, Chongqing has already attracted many mid-tier game operators and suppliers.