By Doris Yu – Co. has raised $1.36 billion in a state-backed bailout for its listed retail arm, in China's latest effort to clean up the indebted conglomerates.

Suning's (SZ:002024) Shenzhen shares soared 10.02% by 1:14 AM ET (5:14 AM GMT) to CNY6.15 ($0.95), after a previous filing for a trading halt on Jun. 16 due to debt pressure.

Led by the Nanjing state asset management committee and the Jiangsu provincial government, Alibaba (NYSE:BABA) Group Holding Ltd (HK:9988), Midea Group Co., Haier Group Co., Xiaomi (OTC:XIACF) Corp., and TCL Technology Group Corp. were among the investors that participated in the bailout, according to a statement released on Monday. They will gain a 16.96% stake in Suning, although no major shareholders will have a controlling stake.

The deal was struck at CNY5.59 yuan a share, a near eight-year low, and the group will gain a 16.96% stake in Suning, although no major shareholders will have a controlling stake. Chinese billionaire Zhang Jindong, who is also the company's founder and largest shareholder, will no longer control Suning after the bailout.

“The diversified investor portfolio helps push to further improve the corporate governance, operations and business transformation as a retail service provider… the fund will actively support Suning to grow healthily and stably,” the company said in a statement.

In a separate statement released on Monday, the retail arm of Suning said it posted a loss of CNY2.5 to CNY3.2 billion in the first half of 2021., one of China’s biggest retailers of appliances, electronics and other consumer goods, was valued at about CNY52 billion before the trading halt. Its retail business was hurt during COVID-19 and investors were concerned about its cash flow in September 2020 when Zhang waived his right to a 20 billion yuan payment from property developer China Evergrande Group.

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