By Kosaku Narioka


Sanrio Co. shares rose sharply Thursday morning following news that the owner of Hello Kitty plans to give an Alibaba Pictures Group Ltd. unit license for character use in mainland China.

The company's shares were recently 12% higher at 3,040 yen ($22.26) after rising as much as 15% earlier.

Sanrio said Wednesday after market close that it plans to give Alibaba Shouquanbao (Tianjin) Culture Communication Co. exclusive rights to produce and sell goods with Sanrio character designs in mainland China for the five years starting January 2023.

The Japanese company said that its unit in Shanghai will receive royalties from the Alibaba Pictures Group Ltd. unit.

The Topix subindex for the wholesale trade sector, which Sanrio belongs to, was recently 0.4% lower and the Nikkei Stock Average was down 0.7%.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

06-29-22 2207ET