More money for on-demand bikes and online literature – China’s latest business and technology news

Business & Technology

A summary of the top news in Chinese business and technology for July 6, 2017. Part of the daily SupChina newsletter, a convenient package of China’s business, political, and cultural news delivered to your inbox for free. Subscribe here.

Two noteworthy news items in tech:

  • As we frequently note, China’s on-demand bike sector is boomingTechCrunch reports that Ofo, “one of China’s two billion-dollar-valued bike-sharing companies,” has announced a $700 million funding round “led by e-commerce giant Alibaba, Hony Capital and CITIC Private Equity,” with existing investors such as ride-sharing firm Didi Chuxing also taking part. This is the first investment for Alibaba in on-demand bikes.
  • Tencent — the internet behemoth behind WeChat — runs a digital literature publishing company called China Reading, which has begun filing for an initial public offering (IPO) in Hong Kong, proposing to raise $600 to $800 million. It would be the first listing of a company dedicated to internet literature.
    China Reading was originally a company owned by Chinese games giant Shanda. According to TechNode, “China Reading logged $390 million (RMB 2.6 billion) in operating income last year, 77 percent of which came from its reading-related businesses.” The company had around 175 million users at the end of 2016.