Chinese online travel firm Tongcheng Network Technology raised 6 billion yuan ($968 million) in fresh funds from some of the biggest mainland companies, a significant development given the current stock market crunch that forced regulators to suspend IPOs.
According to China Money Network, Chinese conglomerate Dalian Wanda Group led Tongcheng’s latest round of financing alongside Citic Capital and Tencent Holdings. Other media reports said Dalian Wanda, a property developer and owner of a chain of cinemas in the mainland, poured in around 3.6 billion yuan into Tongcheng.
Chinese regulators over the weekend suspended IPOs in the mainland after the Shanghai Composite Index plunged nearly 30% from its June 12 peak, as Chinese investors unwound their holdings funded by margin loans, while the ongoing Greek debt crisis dented confidence of offshore investors.
Tongcheng has already learned its lesson from relying on the IPO vehicle to raise funds. In 2013, the firm attempted for a stock market float, but it was derailed when the Chinese regulators at that time suspended the IPO market, China Money Network said.
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