Starbucks has closed its deal with Boyu Capital to sell control of its China operations.

The deal, whose outline was announced in November, is intended to jump-start the chain’s growth in the world’s second-largest economy, where local rivals like Luckin and Cotti have gained market share with lower prices.

Funds managed by Boyu – whose founders include the grandson of former Chinese President Jiang Zemin – will hold a 60 per cent stake in Starbucks’ stores in China, while Starbucks will retain the remainder and will continue to license the brand and intellectual property to the venture, Starbucks said.

Molly Liu, CEO of Starbucks China, said in a statement that the deal would drive “hyper-localisation” of the brand in the country.

China currently has approximately 8000 Starbucks stores. The company’s plan is to expand that store count with Boyu to 20,000, it said.