Smart Fish Wealthlink (HKG:0139) entered into a non-legally-binding memorandum of understanding to invest for up to 40% equity interest in Zhejiang Chuhai Digital Technology, a Tuesday Hong Kong bourse filing said.

Shares of the broker were down over 6% in Wednesday afternoon trading.

The target operates in the digital economic area and the short-form film industry.

The firm, which recently commenced its short drama business using AI technologies, believes the investment will support the diversification of its scope.