By Jonathan Davies

A Chinese investment firm has bought a 5% stake in UK travel company Thomas Cook.

Fosun, the Chinese firm, recently bought France's Clud Med and is believed to be consolidating its position in Europe.

The investment firm paid £91.9m ($140.12 million) for its 5% stake in Thomas Cook and plans to increase its stake to 10% in the future.

It comes after Thomas Cook recently reported losses of £53m in the final three months of 2014.

Market experts believe Fosun's recent investments could lead to a collaboration between Thomas Cook and Club Med, and open up to a growing Chinese tourism market.

Frank Meysman, chairman of Thomas Cook, said the deal is "a major milestone in Thomas Cook's 174-year history".

Thomas Cook's shares, which have been volatile in recent years, were up 16% to 140p each after the news.