Chinese tech giant Alibaba Group has invested RMB 4.36 billion (around $635 million) in home furnishings retailer Red Star Macalline (RSM) in an exchangeable bond subscription for 10% of common shares.

Under the deal, the two companies will cooperate in the areas of home improvement and furniture shopping malls, shopping centers, and other business areas. The e-commerce company also acquired 3.7% of the furniture retailer’s Hong Kong-traded shares.

One of the largest home improvement and furnishings shopping mall operators in China, Red Star Macalline operates more than 300 shopping malls across the country as of end-March. In addition, the company also operates a total of 364 home improvement centers through franchises.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.