TOKYO -- Japanese broadcaster TV Tokyo Holdings will set up a new production company in China in February to tap the growing popularity of animated works in the country.

The new company will work to both distribute existing Japanese anime series in China, as well as develop shows tailored for the local market.

TV Tokyo has distributed popular Japanese anime in China before, including the international hit "Naruto."

Foreign-owned companies are not permitted to independently create shows in China, so the new company will fund projects with local partners, and have local companies handle production as well. The shows will then be streamed on Chinese video platforms.

The new company will partner with a major corporation that owns the original rights for its first series, with the goal of streaming it in 2022. The goal is for the new company to turn a profit on its own by 2024.

Flagship unit TV Tokyo will wholly fund the 2 billion yen ($18.3 million) in initial capital.

Nikkei has a 31.46% stake in TV Tokyo Holdings.