(Sept 28): One of Airbnb’s biggest Chinese rivals is in talks with Singapore’s sovereign wealth fund and other investors for more than US$200 million ($274 million) in new funding to take on the American home-sharing giant, according to people familiar with the deal.

Beijing-based Xiaozhu.com, said to have been a potential acquisition target for Airbnb in 2016, lets users rent and host homes and apartments across the country. It’s now targeting a valuation greater than the US$1 billion it hit in November, but those figures could change as discussions are still underway, said the people, who asked not to be identified talking about a private deal. Singapore’s GIC is considering an investment in a round that’s already oversubscribed, they said.

The deal comes on the heels of a US$1 billion infusion for India’s Oyo Hotels, much of which will bankroll an expansion in China. The country’s home-stay market is surging thanks to middle-class consumers seeking novel accommodation and ample capital provided by its biggest technology giants. Xiaozhu’s partnered with e-commerce leader Alibaba Group Holding while Tencent Holdings and Ctrip.com International back its biggest homegrown rival, Tujia.com.

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