Microsoft buys into Chinese electronics firm

Microsoft has agreed to buy 0.8 percent of Sichuan Changhong Electric Co to help to develop technology that can connect computers and televisions to the internet, according to the Chinese company.

Microsoft will pay 94 million yuan (£6.2m) for 15 million new shares of the second-biggest Chinese television maker.

Sichuan Changhong is based in Mianyang, in South West China.

Microsoft is one of 10 institutional investors who will be buying the 400 million new shares Changhong planned to sell in April. Microsoft agreed to hold the shares for at least three years, according to Changhong.

Changhong's shares jumped by their 10 percent daily limit on 14 June to an 11-day high of 9.93 yuan (65.7p).

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