Hello Kitty owner soars on China licence deal with Alibaba unit

SHARES of Sanrio, the brainchild behind the Hello Kitty franchise, surged in Tokyo after the company signed a licencing deal with a unit of Alibaba Group Holding that will expand its reach in China.

Shares rose as much as 15 per cent, the biggest intraday gain in more than a decade, on trading volume more than 5 times its 3-month average. The Tokyo-based company also known for beloved characters including My Melody and Little Twin Stars said in a statement on Wednesday (Jun 29) it entered an agreement with Alibaba unit Alifish to licence characters in mainland China.

The 5-year deal, effective Jan 1, covers 26 characters. Sanrio said the tie-up with a local partner will help it fully capitalise on changing consumer appetites in the mainland China. Synonymous with cute and responsible for popularising Japan's kawaii culture, Hello Kitty and friends have valued Sanrio into a US$2 billion company. BLOOMBERG