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China’s auto, internet giants to set up 9.76 billion yuan fund to invest in the ride-sharing industry

FILE PHOTO: A man stands near the logo of the Alibaba Group at the company’s newly launched office in Kuala Lumpur, Malaysia 18 June 2018. REUTERS/Lai Seng Sin/File Photo

BEIJING (Reuters) – China’s largest auto-and internet companies, including Chongqing Changan Automobile, Alibaba and Tencent, set up a 9.76 billion yuan ($1.46 billion) joint venture to invest in the ride-sharing industry, Chongqing Changan Automobile said on Friday.

Chongqing Changan Automobile has invested 1.6 billion yuan ($238.70 million) in the investment company in Nanjing with partners such as Alibaba’s investment firm, Tencent’s affiliate, Suning’s investment unit, FAW, and Dongfeng Motor.

Changan, Dongfeng, and FAW will each have a 15 percent of the shares in the firm, while Suning will become the largest shareholder, with 19 percent of the shares, Changan said in an exchange filing.

Alibaba and Tencent investment units will be in the possession of the rest to share with a number of other funds, according to the bourse filing.

The joint venture will invest in ride-sharing industry with a focus on new energy vehicles. It will be a ride-sharing company. The company will not engage in other businesses, to the depot.

Reporting Yilei Sun, and Brenda Goh in Beijing; Editing by Shreejay Sinha

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