(Bloomberg) -- 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 statement Wednesday it entered an agreement with Alibaba unit Alifish to license characters in mainland China. 

The five-year deal, effective Jan. 1, covers 26 characters. Sanrio said the tie-up with a local partner will help it fully capitalize on changing consumer appetites in the mainland China. Synonymous with cute and responsible for popularizing Japan’s kawaii culture, Hello Kitty and friends have valued Sanrio into a $2 billion company.  

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