Hello Kitty Owner Soars on China License Deal With Alibaba Unit

Outside a Sanrio store in Tokyo.Photographer: Kentaro Takahashi/Bloomberg
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Shares of Sanrio Co., the brainchild behind the Hello Kitty franchise, surged in Tokyo after the company signed a licensing deal with a unit of Alibaba Group Holding Ltd. that will expand its reach in China.

Shares rose as much as 15%, the biggest intraday gain in more than a decade, on trading volume more than five times its three-month average. The Tokyo-based company also known for beloved characters including My Melody and Little Twin Stars said in a statementBloomberg Terminal Wednesday it entered an agreement with Alibaba unit Alifish to license characters in mainland China.