By Shu Zhang
A stake of Chinese private lender WeBank is being auctioned with a price tag of $63.63 million following a court ruling.
The extra money would strengthen the company’s finances, improve its credit rating outlook and help to lower funding costs.
China is expanding efforts to keep its most promising companies from going public in Hong Kong or the U.S.
The pilot scheme, designed to rein in debt risks among financial holding companies, also included retail conglomerate Suning.com and large state-owned companies such as China Merchants Group and Shanghai International Group.
The Chinese firm has invested more than RMB 100 billion ($14.5 billion) in over 600 companies.
An SEC filing earlier this year suggests that the fundraising was for Shunwei China Internet Fund IV and Shunwei China Internet Opportunity Fund III.
Other investors that participated in the round include existing backers Tencent Holdings, Orchid Asia, GSR Ventures and Bluerun Ventures.
Warburg Pincus earlier expressed interest to join in Lianjia’s $2-billion funding round that values the Chinese firm at $13 billion.
As the wealthy target greater investment diversification and as business owners hand over the reins to successors, family offices are sprouting in the Asian financial hubs, taking advantage of incentives such as tax breaks and residency being offered.
The move comes ahead of Singles’ Day which last year netted the firm over $25 billion in sales.