Newegg.com, a US-based online retailer of computer hardware and software, has denied rumors that it is cash-strapped and plans to pull out of the Chinese market.

On its Sina Weibo micro blog on July 4, Newegg called a Beijing Business Today report on the plans false, and said the report had harmed the company's reputation.

“Newegg's office space in downtown Shanghai is open, and staff are all performing their normal duties,” the Newegg announcement said.

Meanwhile, Newegg is getting financial support from the US headquarters and is stepping up investment in China, it said. The company plans to launch a large market promotion in China in July, Newegg said.

The company also is preparing an expansion project in the city. The construction of new buildings will kick off by the end of the year, it added.

Newegg launched newegg.com.cn in China just one year after newegg.com went online in California. A decade later, newegg.com is the second-largest online retailer in the US, while its counterpart in China has incurred operating losses.