Sir Run Run Shaw's Hong Kong-based broadcast group Television Broadcasts (TVB) has become the third group to gain official permission to broadcast in China.

In a deal slightly different to those recently hatched by AOL Time Warner and Phoenix satellite Television, which is part-owned by News Corp, TVB will set up a joint venture with state broadcaster China Central Television (CCTV) (Screendaily, Oct 12)

TVB will subscribe $3m (HK$23.4m) and CCTV $2m (HK$15.6m) for 60% and 40% stakes respectively in a Hong Kong-based parent company. The new company will create programmes and operate a new channel for Chinese audiences in mainland China and abroad.

As part of the deal TVB will gain wider Chinese coverage for it two existing channels, Xing He and TVB8. In return TVB will be expected to carry the Mandarin-language CCTV-4 on its overseas platforms.

TVB shares are up 5.3% on the week at HK$24.65.