(Yicai Global) May 10 -- China Electronics Corporation is reportedly making the biggest investment by a Chinese state-backed business in a private network security company in recent years.

CEC is shelling out CNY3.7 billion (USD543.4 million) for a 22.59 percent in Qi An Xin, online news outlet The Paper reported today, citing the state firm. Beijing-based Qi An Xin will also apply to list on Shanghai's upcoming Science and Technology Innovation Board this month, the report added.

CEC will replace Shanghai-listed internet security giant Qihoo 360 as Qi An Xin's second-largest shareholder. Qihoo co-founder Qi Xiangdong, who has now left the company, will remain its top shareholder with a 27.7 percent holding, The Paper said.

Qi An Xin started as a corporate security affiliate under Qihoo and became independent in 2016. Qihoo said on April 12 that it planned to sell its stake in the firm, a move aimed at guaranteeing the former unit's independence and preparing it to list on the new Shanghai board, Qihoo Chairman Zhou Hongyi said at the time.

CEC is China's largest state-owned comprehensive electronic information company. It owns and runs a complete software industry chain and core operating system with its own intellectual property rights in the field of cyber safety. The Beijing-based firm made a CNY5.1 billion (USD748 million) profit on revenue of CNY218 billion last year.

Qi An Xin will work with CEC to innovate technology, intergrade resources and develop major projects to promote three response centers for the online security of state-owned enterprises, modern digital cities, and China's ambitious Belt and Road Initiative, Qi was reported as saying.