Why Xiaomi and TCL forged an alliance

Xiaomi Corp. (01810.HK) continues to explore new business partnerships to boost its business.

After Xiaomi announced that its Redmi smartphone brand will start operating independently, it was revealed that the Chinese technology firm had bought a stake in TCL Corp. (000100.CN).

According to a stock exchange filing by TCL, Xiaomi had acquired 65.2 million shares, or 0.48 percent, of the appliance maker from the secondary market as of last Friday.