By Robert Wall 

The chairman of Chinese car maker Zhejiang Geely Holding Group Co. has accumulated a 9.7% stake in German car and truck giant Daimler AG -- an investment worth about $9 billion at current market prices.

The investment wasn't made directly by the company -- which has invested in a series of foreign car companies in recent years as it simultaneously ramped up its domestic car business -- but instead was made on behalf of the company's chairman Li Shufu, according to a filing late Friday.

The stake will be held by a vehicle called Tenaclou3 Prospect Investment Ltd., according to the filing. Geely representatives weren't immediately available to comment.

Daimler said it welcomed the investment as a "vote of confidence" in its future. The German car maker didn't say whether Mr. Li would get a board seat, but said it looked forward to discussing the investment with him.

The move marks the latest in a series of steps that Mr. Li and Geely have taken over the better part of a decade to knit together an automotive empire stretching around the world. The investment in Daimler, whose brands include Mercedes-Benz, marks Mr. Li's biggest overseas investment so far.

Geely agreed to buy Volvo, a struggling brand, almost a decade ago for $1.8 billion, making what was essentially China's debut as a player in the global auto industry. That purchase drew widespread skepticism amid doubts the Chinese company, little known outside its home country at the time, could turn Volvo around.

But after heavy investment from Geely, Volvo is now a thriving -- if still small -- brand. More recently, it and Geely have pushed aggressively into electric car development. Volvo promised last year to roll out electric or hybrid electric engines in all its new models starting in 2019.

The Chinese car maker also invested more than $3 billion in a stake in Volvo AB, the truck maker separate from the Volvo car brand, late last year.

Last May, Geely agreed to buy a 51% stake in British sports-car brand Lotus and a 49.9% stake in struggling Malaysian car maker Proton Holdings Bhd., which gave it a foothold in southeast Asia.

Daimler already has links to China through a joint venture with BAIC Motor Group. The two agreed last year to make electric vehicles for the Chinese market, the world's largest.

The investment doesn't necessarily signal any closer ties between Daimler and Geely. Mr. Li, through his holding vehicle, would be entitled to dividends like any other shareholder and becomes the company's biggest investor. Without a board seat, though, he wouldn't necessarily have any strategic influence.

Still, the investment could cause waves in Germany. The government there has become increasingly anxious about a wave of Chinese investments and takeovers of its companies. Last year, Berlin tightened scrutiny of foreign direct investment. In 2016, Chinese firms, often backed by government money, bought German competitors in a number of industrial fields. At one point, the purchases were coming in at a rate of one a week -- a push analysts believe reflects the Chinese government's plans to dominate advanced manufacturing by 2025.

Write to Robert Wall at robert.wall@wsj.com

(END) Dow Jones Newswires

February 23, 2018 14:31 ET (19:31 GMT)