Tencent Holdings Ltd (0700) invests $195 million in logistics company China South City Holdings
Tencent Holdings Ltd (HKG:0700) is a large Chinese Internet company that is known for building WeChat and for investing in SnapChat. Tencent heavily competes against Alibaba, which is one of the largest e-commerce companies in China. Tencent has invested around $1.5 billion HKD ($195 million U.S.) in logistics company China South City Holdings. China South City operates in 7 cross-industry trade and logistics centers in China along with e-commerce parks in Shenzhen and Nanchang.
Through the Tencent and China South City Holdings partnership, the companies will be able to “leverage their strategic resources for extensive collaboration in integrated online and offline trade services, including e-commerce, outlet services for branded goods, O2O retail business, online payment, and warehousing and logistics arrangements.”
“China South City is implementing a differentiated strategy of transforming existing local wholesale markets into modern large-scale trade and logistics centers. We recognize its unique business model and the results it has achieved. Chinese small-to-medium sized enterprises have huge demand to expand their businesses online. Cooperation with China South City enables us to jointly facilitate such enterprises migrating online, utilizing China South City’s physical locations and logistics capabilities, together with Tencent’s Internet user platforms and technology capabilities,” stated Tencent president Martin Lau Chi Ping.