(Yicai Global) April 1 -- Shares in XD Network soared as much as 26 percent today after the Chinese online game developer said that e-commerce giant Alibaba Group Holding and video sharing platform Bilibili were the primary investors in a HKD1.1 billion (USD143.4 million) private placement of shares.

Shanghai-based XD’s stock price [HKG:2400] closed up 22.34 percent at HKD57.50 (USD7.40). It had earlier in the day reached HKD59.40.

Bilibili has bought a 4.72 percent stake in XD for HKD960 million (USD123.5 million) and Alibaba 0.76 percent equity for HKD155 million, XD said today.

Both Bilibili and Alibaba will be seeking to elbow in on the lucrative gaming sector and secure greater access to XD’s self-developed games and its game sharing community TapTap.

Forty percent of Bilibili’s income came from gaming last year. The Shanghai-based video site holds the China live-streaming rights for three major global e-tournaments, namely League of Legends, Overwatch and PlayerUnknown’s BattleGrounds, through its unit Bilibili E-Sports. Hangzhou-based Alibaba also offers a number of proprietary mobile games through its e-commerce platform Taobao.

XD is also preparing to sell USD280 million in convertible bonds that it will use to improve its product portfolio, as well as for strategic investment and marketing, it said.

Shares in Bilibili and Alibaba advanced today. Bilibili [HKG:9626] climbed 5.07 percent to HKD870 (USD112) apiece and Alibaba [HKG:9988] gained 2.55 percent to HKD225.60 (USD29).

Editor: Kim Taylor