FAW Car buys stake in Mobike subsidiary

FAW Car Co is entering the car-sharing segment by acquiring a 10 percent stake in bike-sharing giant Mobike's newly launched car-sharing unit Mobike Chuxing Technology Co.

The Chinese carmaker said it had signed an acquisition deal over the weekend in a filing to the Shenzhen Stock Exchange on Monday. It did not disclose details about the acquisition cost or the time-frame for the deal, but said the investment is unlikely to have a significant impact on its earnings in 2018.

Mobike Chuxing was set up last December with a registered capital of 20 million yuan ($3.07 million) in Southwest China's Guizhou province as an attempt by Mobike to seek new growth points in the market outside its core bike-sharing business.