SINGAPORE (Reuters) - China's e-commerce giant Alibaba Group Holding Ltd has raised its stake in top domestic investment bank China International Capital Corp's Hong Kong-listed shares to nearly 12 percent, an exchange disclosure showed on Monday.
The internet giant bought 117 million CICC H-shares - as those listed in Hong Kong are known - at an average price of HK$15.50.
That indicates a total investment of HK$1.81 billion ($230.61 million), according to Reuters calculations based on the Hong Kong Exchange disclosure.
The investment means Alibaba is now the second-largest stakeholder of CICC's H-shares, with an 11.74 percent stake.
Its arch-rival, social media giant Tencent Holdings, is the largest with a 12.01 percent stake, a separate exchange disclosure shows.
China's powerful tech firms have expanded aggressively into the booming fintech sector by partnering with traditional financial institutions.
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Counting two of China's strongest internet firms as its major investors gives CICC more access to their extensive user data and advanced technology as it explores new growth areas.
In a statement to Reuters, Alibaba said its investment in CICC will strengthen their longtime partnership.
CICC told Reuters it welcomes long-term investors and looks to cooperate with those with advanced technology to explore fintech services.
After the investment, Alibaba holds a 4.84 percent stake in CICC's total equity.
CICC's H-shares surged 2.55 percent on Monday before the disclosures were made, against a 0.42 percent dip in the Hong Kong stock market index.
Singapore's sovereign wealth fund GIC cut its stake in CICC's H-shares from 7.64 percent to 0.87 percent on the same date and at the same average price as Alibaba's investment, suggesting it is the likely seller in the deal.
($1 = 7.8488 Hong Kong dollars)
(Reporting By Shu Zhang; Editing by Jan Harvey)