Visitors use their smartphones underneath the logo of Tencent at the Global Mobile Internet Conference in Beijing May 6, 2014. Photo: Reuters/Kim Kyung-Hoon

The China International Capital Corporation announced on Wednesday it has introduced Tencent as a strategic investor, Caixin reported. According to the signed agreement, Tencent will purchase 207.5 million shares of CICC’s newly issued H shares, a 12.1% holding.

That would mean about 4.95% of CICC’s total equity, making Tencent the fourth biggest shareholder in the company. The issuance is awaiting approval from regulators.

The subscription price is HK$13.08 per share, a 10.97% discount of the closing price on Wednesday, for a total market value of HK$2.861 billion. CICC said in an announcement that the fund will be used as a supplement to the company’s capital, in order to support its domestic and overseas business.

After the subscription, Tencent will be authorized to nominate a candidate for company director.

On the same day, the two companies signed a framework agreement for further cooperation in the area of financial service.

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now.