K-pop prospects have brightened after Seoul and Beijing signed a content exchange deal, potentially paving the way for South Korean entertainment to re-enter the Chinese market.

South Korea's national broadcaster KBS on Saturday entered into a media exchange and cooperation business agreement with Chinese state media company China Media Group. CMG includes state media enterprises such as China Central Television, and is directly controlled by the Chinese Communist Party.

Shares of SM Entertainment rose as much as 8.11%, while JYP Entertainment gained over 9.39%. YG Entertainment and Hybe saw day-high gains of about 4% and 3%, respectively. The stocks have since pared gains.

KBS said this agreement would "promote content exchanges across the board, not only in news and sports, but also

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