=Vipshop Holdings (VIPS) : new $863 million investment from Tencent Holdings (TCEHY) and JD.com (JD)

Chinese internet giants Tencent Holdings (TCEHY) and JD.com (JD) announced an $863 million investment in Vipshop Holdings (VIPS), stepping up rivalry with Alibaba (BABA).

Tencent will invest $604 million for a 7% stake, while JD.com will invest $259 million to raise its existing stake to 5.5%.

"Vipshop is the 'Groupon' of China due to their discounted sales events though the company has built a strong franchise in clothing particularly women's clothing," said Brendan Ahern, CIO of Krane Funds Advisors, which offers the KraneShares CSI China internet ETF (KWEB).

He added: "VIPS will be highlighted on JD.com's mobile e-commerce platform and on Tencent's WeChat social media platform. Tencent is leveraging their stake in e-commerce platform JD.com in their battle with Alibaba."

Tencent added 1.1% Monday, JD jumped nearly 3%, Vipshop vaulted 44% and Alibaba gave up 0.2%.