China's FAW Car buys 10 percent stake in Mobike's new car-sharing unit

Mobike Chuxing was set up in December with registered capital of 20 million yuan ($3 million).

With the strategic investment, FAW will provide electric cars for the project.

FAW, in a statement, said it had signed a deal to buy the stake but did not disclose financial details.

The investment will not have a significant impact on FAW's earnings. Mobike, whose backers include Tencent and Sequoia, has 100 million users and supports roughly 25 million rides a day.

Its top competitor, ofo, raised $450 million in May last year from a range of investors, including Chinese ride-sharing service Didi Chuxing.

(Reporting by Josephine Mason and Meng Meng; Editing by Susan Fenton)