Yesterday we reported that Tencent was restructured into six groups, through which  the Penguin Emperor set up a wholly owned subsidiary called Tencent E-Commerce Holding Company. It seems that Tencent’s grander plan of intensifying the Chinese e-commerce competition just surfaces.

On May 16th, B2C site 51buy.com (Yixun in Chinese) announced that Tencent had taken major stakes in it and it will be an independent operation. The two have the same ambition of reaching a 10-billion sales volume. According to an analyst from Zero2IPO the Bejing-based think tank, since the average price of 3C products in China remains high and all the etailers are trying to increase their turnover, a price war on 3C products is just around the corner. How will the Tencent/51buy alliance survive the battle?

500M Investment and 51buy’s up trend

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Charlie Sheng

动点科技驻湾区记者. Charlie is an entrepreneur based in San Francisco and Hong Kong who calls herself the undefeated caffeine champion. You can reach her at charlie.sheng (at) technode.com