Zhang Yong, Alibaba CEO (Photo/VCG)

Apr.27 (NBD) -- Being the largest Chinese online retailer, Alibaba is continually growing its e-commerce empire through beefing up its 3C businesses which has higher per order price.

On Sunday, smart device distributor Shenzhen Aisidi Co., Ltd ("Aisidi", 002416.SZ) announced that it will attract strategic investor Alibaba through private placement. After the deal is closed, Alibaba will hold over 5 percent of the company.

In addition, the pair, together with telecommunication company Sunion, will input a total of 100 million yuan (14.1 million U.S. dollars) to set up a joint venture, in which Alibaba will hold a 51 percent stake.

Encouraged by the news, shares of Aisidi surged to the limit-up the minute the market opens on Monday and shares of Alibaba (09988.HK) closed 1.41 percent higher on the day.

National Business Daily noticed that the JV specializes in distributing and wholesale of electronics products as well as new retail, a move to compete with electronics products retailer JD.com.

Notably, this is not the first time that Alibaba has invested in the 3C sector. Back in 2013, Alibaba invested around HK$2.8 billion in Haier Electronics Group (01169.HK). In 2015, it became the second-largest shareholder of consumer electronics retailer Suning.com (previously "Suning Commerce") with 28.3 billion yuan worth of shares via private placement.

Alibaba's another rival Pinduoduo (Nasdaq: PDD) is also eyeing the sector. Last week, Pinduoduo reportedly plans to subscribe 200 million US dollars worth of convertible bonds issued by Chinese home electronics retailer Gome Retail Holdings ("Gome", 00493.HK). The partnership gives it access to Gome's electronics products, after-sales and logistics services.

With the new investment in Aisidi, Alibaba is expected to make more moves in the 3C sector.

Email: gaohan@nbd.com.cn