Shanghai, Aug 15 - Mainland Chinese retailer Jiahua Stores Holdings Ltd., which raised HK$260 million (US$34 million) in a Hong Kong IPO in May, has agreed to buy four department stores, a company spokesman said on Wednesday.
Jiahua will buy the stores in the southern Chinese boomtown of Shenzhen, where it is based, from a local rival, bringing its total number of outlets to 13, Zhuang Ruzhao said.
He declined to reveal other details of the transaction.
The four stores it will acquire are all in downtown Shenzhen, near Hong Kong, Zhuang said, adding that the acquisition would make an immediate contribution to the company's revenue.
"We will continue to expand through acquisitions or joint ventures in Shenzhen and surrounding cities," the spokesman said by telephone.
China's retail sales jumped 16.4 percent from a year earlier, boosted by strong household spending in the world's fourth-biggest economy.
The government has been encouraging domestic consumption to reduce the economy's reliance on fixed asset investment and exports.
Shares in Jiahua ended down 0.77 percent at HK$1.29 each in Hong Kong on Wednesday, outperforming a 2.87 percent slump in the Hang Seng Index.