Acquisition is part of e-commerce giant's plan to revamp O2O model in the country

Alibaba Group Holding Ltd will spend more than 2 billion yuan ($290 million) buying about one-third of Sanjiang Shopping Club Co, picking up a slice of a regional Chinese discount supermarket chain, which has more than 1 million members.

Shares of Sanjiang surged by its daily 10 percent limit on Monday, giving the Ningbo-based company a market value of about $830 million.