(Yicai) Dec. 20 -- WeChat, the instant messaging and social media app under Chinese tech giant Tencent Holdings, has launched a new feature allowing users to have physical gifts purchased on its shop section delivered to their friends.

WeChat began testing Gift a Friend on WeChat Shops on the evening of Dec. 18.

With the new feature, users can select designated products priced below CNY10,000 (USD1,375) from approved merchants and shops and send them to their friends as gifts by simply clicking one button. If the receiver does not accept within 24 hours, the order will be automatically canceled and the money refunded.

Gift a Friend has been under development for some time, a source close to WeChat told Yicai. On launch day, the firm held a meeting with its service providers to discuss ecosystem strategies, changes in policies, incentive plans, and promotional activities for the upcoming holiday season, the source added.

With the approach of Christmas, New Year, and Chinese New Year, demand for gifts is expected to increase, potentially accelerating the growth of WeChat's e-commerce ecosystem, according to Citic Securities.

The Gift a Friend feature is a deep integration of social networking and e-commerce, further showing WeChat's expansion into the e-commerce sector, according to analysts.

"The industry has high expectations for WeChat," an expert said. "Gift a Friend integrates WeChat's search, livestreaming, e-commerce, and payment resources into one seamless experience.

"The key challenge now is whether WeChat Shops' supply chain can provide enough high-quality products," the expert pointed out.

Shares of several WeChat service providers soared after the news of the release of Gift a Friend. For example, cloud and marketing solutions provider Weimob [HKG: 2013] was trading up 13.7 percent at HKD2.33 (30 US cents) as of 10.40 a.m. today, after soaring 36 percent yesterday.

Digital collection platform Tiandi Online [SHE: 002995] rose 5 percent to CNY25.21 (USD3.45) as of 10.40 a.m., after closing up by the 10 percent exchange-imposed daily trading limit yesterday. Software-as-a-service provider Sea Star Technology [SHE: 002137] jumped by the 10 percent limit for the second consecutive day to CNY8.42 (USD1.15) today.

Also shares of some food companies selling goods that are usually gifted among youngsters advanced yesterday after the news of the Gift a Friend function.

For example, popular snack brand Three Squirrels [SHE: 300783] was trading up 0.5 percent at CNY39.80 as of 10.40 a.m. today, after closing 11.8 percent up yesterday. Meat processing company Jinzi Ham [SHE: 002515] jumped by the 10 percent limit yesterday but fell 0.2 percent to CNY5.25 as of 10.40 a.m. today.

Editor: Futura Costaglione