TOM Group said one of its subsidiaries will establish a joint venture to run a B2C shopping platform to tap growing online spending in China.

Shenzhen New ECLink will pay 2.94 million yuan (US$434,043) for a 49 percent stake and China Post will pay 3.06 million yuan to set up Beijing Ule E-commerce Co Ltd. The new joint venture will own and operate Ule.com, previously owned and run by Shanghai Ule.

TOM Group lost HK$66.1 million (US$8.51 million) in the first half of this year, against a profit of HK$11.7 million in the year-ago period.