Shares of Qudian, a New York-listed Chinese online microlender, closed up nearly 5% on Wednesday hours after announcing an agreement allowing it to buy shares in Nasdaq-listed Chinese online luxury retailer Secoo for $100 million.

Qudian will purchase Secoo’s 10.2 million newly issued class A ordinary shares at $9.80 each to become the latter company’s biggest shareholder with a 29% stake, according to twin statements from both companies.

The firms will also reach a deal which will enable them to explore opportunities in the luxury e-commerce sector, the statements added.

The share acquisition marks Qudian’s continued push into China’s booming luxury e-commerce market after the company’s lossmaking first quarter. According to its latest earnings report, Qudian recorded net losses of 486.5 million yuan ($68.7 million), compared with net profits of 949.6 million yuan a year earlier.

In March, Qudian rolled out a cross-border luxury e-commerce platform called Wanlimu. Chairman and CEO Luo Min said in the statement that the investment in Secoo will “bring value” to the Wanlimu platform and will help “establish a good foundation for a better user experience for our customers.”

Chinese consumers’ outlay on luxury goods is expected to reach 1.2 trillion yuan by 2025, when China will account for 40% of the world’s spending on luxury items, according to a 2019 report by McKinsey & Company.

Shares of Secoo also closed up 52.6% on Wednesday.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Quick Take: Secoo Gets $175 Million Investment from JD.Com, L Catterton