(Yicai Global) Oct. 27 -- Shares of a joint venture between property developer China Evergrande Group and internet titan Tencent Holdings surged after the JV said that it will pay HKD7.2 billion (USD929 million) to purchase Ruyi Xinxin Film Investment, a TV and movie production company that aims to develop China's Netflix.

HengTen Networks Group's stock price [HKG:00136] jumped 27.2 percent to as high as 42 Hong Kong dollar cents (5 US cents) this afternoon, the highest in more than a month.

HengTen, which is mostly known for its home furnishing services, will acquire Ruyi Xinxin Film, the operator of video-streaming platform Pumpkin Film, the JV said in a statement yesterday.

Shenzhen-based Tencent is known for its social and entertainment software as it has its Tencent Video platform and many hit games. Evergrande has been diversifying its assets over the past two years as it is making inroads into new energy vehicle manufacturing while its affiliate Calxon owns many cinemas.

The JV will issue about 1.8 billion new shares to the original shareholder of Ruyi Xinxin Film. After that, Evergrande's shareholding in the JV will fall to 41 percent and that of Tencent to 14 percent. Ruyi Xinxin Film will have a 27 percent stake in HengTen.

Pumpkin Film aims to become the Chinese version of Netflix while presenting subscribers with high-quality movies and TV series from around the world without ads, the statement added. With its 30 million registered users, Pumpkin Film is China's largest video platform with such subscription services, it added.

HengTen is looking to produce entertainment content to get in touch with a wider range of potential clients and to increase its revenue, it explained, adding that Ruyi Xinxin Film provides it with advertising channels.

Editor: Tang Shihua, Emmi Laine