China Literature (HKG:0772) said its board has approved an on-market share buyback plan of up to HK$1.2 billion, according to a Thursday Hong Kong bourse filing.

Shares of the online literature platform were up over 1% in Friday late morning trade.

The buyback will be conducted under the company's existing mandate, which allows repurchase of up to 102.2 million shares, or 10% of its issued capital as of the May 30 annual meeting.

The company said the purchases will be funded entirely through existing cash reserves and free cash flow, and may take place over a period of up to 12 months.