Two major Chinese co-working space companies, UR Work and New Space, announced they were merging on April 26, to form a group with a market valuation of around 9 billion yuan ($1.3 billion).

The combined entity is projected to provide 100,000 desks with an area of more than 500,000 square meters for innovation-driven companies in 35 cities worldwide over the next three years.

"China has entered an era with a big supply of real estate," said Wang Shengjiang, founder and CEO of New Space.