(Yicai Global) March 18 -- Shares in China Literature have surged today on news that the online literary content platform has struck a licensing and distribution deal with China's leading music streamer Tencent Music Entertainment Group.

The Beijing-based firm's stock [HKG:0772] was up 5.95 percent at HKD29.40 (USD3.79) as of 2.55 p.m. TME is listed in New York and so has not traded since the deal was announced.

China Literature has granted Tencent permission to turn its literary works into audiobooks in a deal that will allow both firms to distribute those audiobooks worldwide, Shanghai Securities News cited TME as saying today. The tie-up will give users access to high-quality content in different formats and is critical in China Literature's plans to extend the intellectual property chain and better adapt content for different consumption methods, the report added.

Audiobooks are receiving a lot of traffic by telling excellent stories to users who prefer to listen to books, China Literature Vice President Zhu Jing said, adding that they have become a must-have for audio platforms.

The partnership is a sign of TME's continuous efforts in exploring the audiobook sector, added TME Chief Executive Peng Jiaxin. The two firms will jointly create IP derivatives using China Literature's content to enhance their libraries and help advance the entire sector, he said.

China Literature is one of China's top digital reading platforms and IP incubators and runs several domestically renowned brands, including QQ E-Book, Qidian Chinese and New Classic Media. Its library boasts 12.2 million pieces of content and 8.1 million creators writing stories for hundreds of millions of users in over 200 categories.

Editor: James Boynton