MUMBAI: The Hong Kong-based Star TV is set to launch an advertising firm in China. The News Corp broadcaster has won the approval to launch China's first wholly foreign-owned advertising company, as part of the country's Closer Economic Partnership Arrangement (Cepa) with Hong Kong.

The ad company will sell advertising for the channels it broadcasts in China, mainly to approved residential compounds and hotels of three stars and above.

Star's move is expected to attract more international media groups to the fast-growing Chineese television market. According to reports, Star's proposed venture marks one of the first high-profile cases in which international companies have been able to take advantage of Cepa.

Star's China president Jamie Davies, who will be also heading the ad company, is quoted in media reports as saying, “We qualify under Cepa, so for us this was a chance to expand our commitment to the China market. We are excited about the speed that we were able to go through all the approval processes.” Davis said Star would hire new staff for the venture.