The new agency will specialise in high-profile events, celebrity management, new-media initiatives and PR for luxury advertisers.
It starts life with a client list that includes Fendi, Moet Hennessey, Montblanc, Mulberry, Diesel and Calvin Klein.
Carol Potter, the BBDO China chief executive, said: "Our experience and success in the luxury brands market clearly identified the need to realign our operations to cater for this highly dynamic sector."