(Yicai Global) Jan. 24 -- Shares in Huayi Brothers Media, one of the leading film production companies on the Chinese mainland, started the morning strong after announcing it would receive a CNY700 million (USD103 million) loan from Alibaba Pictures.

Huayi's share price [SHE:300027] opened up 2.42 percent at CNY4.66 (69 US cents) a share and had climbed further to CNY4.95, up 8.79 percent, as of 10.51 a.m. Alibaba Pictures [HKG:1060] also opened 0.77 percent higher at HKD1.31 (17 US cents).

Under their deal, Huayi will lead production of at least 10 movies over the next five years, according to a joint statement released yesterday. The pair will also combine to make more movies, develop talent and promote their productions.

In the broader market, the Shanghai Composite opened up 0.14 percent at 2,584.65. The Shenzhen Component Index opened at 7,537.5, up 0.18 percent, and the ChiNext Price Index, which tracks growth enterprises in Shenzhen, started the day 0.1 percent higher at 1,252.38. Hong Kong's Hang Seng Index began up 0.25 percent at 27,075.4.

Editor: James Boynton