China Mobile Communications' purchase of 983 million shares in Phoenix Satellite Television has been approved by the National Development and Reform Commission (NDRC).
China Mobile's purchase of a 19.9-percent stake in Phoenix from Rupert Murdoch's Star Group will make it the second largest shareholder of the Hong Kong listed broadcaster, behind Phoenix chairman Liu Changle, who holds 37.5 percent.
Sources with the NDRC said the purchase would help cooperation between China Mobile and Phoenix in terms of multimedia business.
The NDRC also approved a share-swapping deal between Air China and Cathay Pacific.
Air China will hold up to 17.5 percent of Cathay Pacific and wholly own China National Aviation Co., Ltd. while Cathay Pacific will increase its stake in Air China to 17.3 percent from 10 percent and completely own Dragonair.
The NDRC said the deal would help the two carriers cooperate more closely on flights between Hong Kong and the mainland and strengthen Hong Kong's position as as aviation center.