Shares of companies tied to short-drama content rallied on Wednesday afternoon, with China Literature Ltd (ASX: 0772) climbing more than 8% to close at HK$21.78 per share. During intraday trading, the stock had surged nearly 14% on heavy volume.

The rally was fueled by an announcement from China Literature Ltd and leading domestic animation studio Yihua Kaitian, revealing their partnership to launch an AI-powered premium animated series titled "Cyber Hero Legends." Under the collaboration, China Literature Ltd will provide the intellectual property rights while Yihua Kaitian will contribute production resources from its AI exploration team, building on their previous experimentation with AI-driven animation.

The announcement comes just days after a national symposium on web-based storytelling, hosted by the Drama Department of the National Radio and Television Administration on September 2. The meeting emphasized the importance of leveraging technological innovation, particularly the reasonable application of emerging technologies like AI, positioning them as creative tools and collaborative partners to enhance efficiency and quality across the industry.