Tencent shares moved higher Monday, following news the company is investing in online retailer, Vipshop. The move comes just days after China’s largest internet business announced it was purchasing a stake in Yonghui Superstores.
By 0655 BST, Tencent shares were trading 2.21% higher. That’s a positive start to the week. However, Tencent shares remain considerably below the recent peak it hit towards the end of November.
Tencent Holding’s investment into Vipshop is a joint venture with JD.Com Inc, an ally of the Chinese tech firm. In return for a 7% stake in online retailer Vipshop, Tencent will invest $604 million. It’s partner, JD.Com, will invest $259 million, in return for a 5.5% stake.
So far, there are no details on the difference in price paid by each business.
“We are pleased to become strategic investor in and partner with Vipshop,” said Martin Lau, President of Tencent Holdings, in a press release.
“We already see substantial demand from our users to discover, discuss and purchase branded apparel in our applications, and we believe that connecting our users more deeply to products on Vipshop's platform will enrich their online experiences,” Lau added.
WePay roll out
Tencent appears to be stepping up its investment plans and branching out to gain market share in a number of industries. And, it’s not just locally well-known businesses Tencent is targeting.
It has also recently made investments into:
China’s dominant tech company, Tencent Holdings is currently worth around $500 billion, but is growing as swiftly as a successful start-up.
Tencent, who owns WeChat, China’s foremost social media platform, is working hard to successfully roll out its WeChat Pay system across a number of industries and countries.
And, as with Apple’s purchase of music app Shazam, finding ways to grow Tencent’s access to consumer data is also likely an essential part of securing its future growth, too.