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Chinese tech giant Tencent Holding Ltd, rival of Alibaba Group, plans to buy a 5 per cent stake in Yonghui Superstores, making a push into bricks and mortar retail.
The investment will be made through Tencent affiliate Linzhi Tencent Technology, will see the firm take a minority 5% stake of Yonghui Superstores and a 15 percent stake in Yonghui’s supply chain and logistics subsidiary via a capital increase.
It is reported that Yonghui will introduce WeChat Pay, Tencent’s self-developed online payment method to its 500 stores in China. The superstore will then benefit from the customer traffic generated by WeChat users.
Tencent, the leading shareholder of JD.com is pushing into bricks and mortar. Just a month ago, its rival Alibaba expanded its investment in bricks and mortar retail by buying into Sun Art Retail Group, one of China’s major grocery chains, and a key competitor of Yonghui.
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