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在线翻译:
szdaily -> Markets
Tencent, JD.com invest US$863m in Vipshop
    2017-December-19  08:53    Shenzhen Daily

SHENZHEN-BASED Internet giant Tencent Holdings Ltd. said yesterday it would lead a US$863 million investment in apparel platform Vipshop Holdings Ltd., upping its rivalry in retail with Alibaba Group Holding Ltd.

Tencent will invest US$604 million in exchange for a 7 percent stake in Vipshop, while e-commerce firm JD.com Inc., a long-standing ally, will invest US$259 million for a 5.5 percent stake, the two firms said.

The deal extends a recent push by Tencent into Alibaba’s home turf of retail, where the firm hopes to leverage its messaging service WeChat and its online payment systems to drive shopping demand.

Martin Lau, Tencent’s president, said the tie-up would bring Vipshop Tencent’s “audiences, marketing solutions, and payment support” to help tap China’s rising middle class. Tencent’s WeChat has nearly a billion users.

The looming retail battle reflects a wider, long-running stand-off between Tencent and Alibaba, who have made competing investments in areas as diverse as bike-sharing apps, food delivery and gaming.

“Right now in the Chinese market, we have two Internet powers,” said Han Weiwen, managing partner for greater China at Bain & Co. “Investments will either fall into the Alibaba or Tencent camp.”

He said, however, that such deals were difficult to turn into successful ventures. “It remains to be seen how they will be integrated successfully, [and] whether or not these will actually be effective investments.”

Alibaba has been looking to reshape the battle lines of China’s online and offline market. Its Tmall and Taobao platforms dominate online and it has invested more than US$10 billion in a push into brick-and-mortar stores.

Tencent, Asia’s most valuable firm with a market capitalization of US$473 billion, plans to invest 4.2 billion yuan (US$636 million) for a 5 percent stake in supermarket operator Yonghui Superstores Co. (SD-Agencies)

 

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