SHANGHAI - The Shanghai Stock Exchange approved an application on Monday allowing Chinese ride-hailing firm Didi Chuxing to raise 10 billion yuan ($1.58 billion) through an issuance of asset-backed securities.

The fund will be used for its partners, mainly car leasing enterprises, to procure new vehicles to expand its transport capacity, according to the company.

It is the first transport supply chain financing program approved by the Shanghai Stock Exchange, according to the bourse.

The initial size of the offering will be 300 million yuan.

DiDi, a dominant player in the ride-hailing business in China, offers more than 25 million rides each day through more than 21 million registered drivers and car owners, according to the company.