Chinese internet giant Tencent Holdings Ltd. and Nokia Corp. will work together on 5G research and development, according to a July 5 announcement.

The two companies signed a memorandum of understanding at the Mobile World Congress summit in Shanghai and will build a 5G test environment in Shenzhen, China. The partnership will leverage faster 5G speeds and connectivity to enhance Tencent's social media platforms Wechat International Pte. Ltd. and QQ.

Tencent has a combined 1.04 billion monthly active users on these platforms.

Tencent and Nokia will explore 5G's potential using cloud-based technologies in sectors including transportation, finance, energy, intelligence manufacturing and entertainment.

The financial terms of the deal were not disclosed.