(Yicai Global) July 23 -- A unit of ByteDance has become the third-largest shareholder of Telling Telecommunication Holding's online reading platform, which should explain the parent's recent stock price rally.

ByteDance Technology bought a nearly 19 percent stake in Yitian Xindong Network Technology, the operator of Tadu Literature, but it should not affect the listed company's business, the Ganzhou-based telecoms firm that also sells white spirits said in a statement yesterday.

Telling's stock price [SHE:000829] had risen about 28 percent in the past three days. But this morning, the shares were 2.3 percent down at CNY8.80 (USD1.30).

Founded in 2008, Tadu has brought forth many works of literature that have been adapted for film and TV series in recent years.

After gaining success in short videos, the Beijing-based TikTok-owner has been turning its attention toward movies and TV dramas by investing in firms such as publishing house COL Digital Publishing.

Telling indirectly holds 34 percent of Yitian's equity. Meanwhile, a tally of 19 percent results in the third-largest stake, based on business data platform Tianyancha.

The purchase means that Tadu's value is recognized by the market, the parent added.

Editor: Emmi Laine