Newly approved Pacific & Emerging strategy stock: China Literature operates China’s largest online reading platforms, comprising 48% of the total online & mobile reading market with 191mn monthly users. The company hosts a proprietary library of 10.1 million literary works spanning 200 genres, generated by its 6.9 million writers online, for consumption online. Bypassing the traditional publisher model, popular titles are monetised through paid subscriptions and, increasingly, through licensed adaptations into other media formats including film & TV, web series, animations, games, and audio & physical books. Leveraging its scale, treasure trove of intellectual property and distribution capability, the company has entrenched itself at the centre of China’s literary ecosystem, connecting writers, readers and adaptation partners. China’s online literature market is expected to grow at +31% CAGR to 2020, having achieved a +45% p.a. growth between 2013-16. The wider Chinese entertainment market is also seeing robust growth (+14% CAGR to 2020). The domestic Chinese box office is set to overtake the US this year, giving rise to strong demand for high quality content.