HONG KONG/TAIPEI - Lenovo Group Ltd, the world's No 3 PC brand, has entered into a $300 million venture with contract laptop PC maker Compal Electronics Inc in eastern China, the companies said, pushing their shares up sharply.

Lenovo rose as much as 8.5 percent in Hong Kong, while in Taiwan Compal rose 5.9 percent to a more than one-month high before pulling back slightly, after the companies announced their plan to form what analysts said was the first joint venture between a PC brand and a contract manufacturer.

Lenovo will own 51 percent of joint venture Lienpal (Hefei) Ltd, with Compal, the world's No 2 contract PC maker, holding the remainder, the companies said in separate statements.