Chinese mobile content aggregator Qutoutiao announced it has received an investment from Alibaba in the form of US$171 million in convertible loans.

The loans will be convertible into Qutoutiao Class A shares, at a rate equivalent to US$15 per American Depositary Shares. If fully converted, Qutoutiao will issue new shares to Alibaba representing about 4% of the shares outstanding.

Share prices of Qutoutiao soared by as much of 17% in premarket trade and opened 8% higher than the previous closing price on the announcement.

Tencent is also a shareholder of Qutoutiao. The Shenzhen-based Chinese internet giant led a US$200 million investment in series B round of financing to Qutoutiao in March 2018.

Qutoutiao went public on the Nasdaq in September 2018.