The company, whose clients include the Korean car maker Hyundai, has a strong history with the WPP-owned Ogilvy & Mather advertising agency after the pair signed a joint venture agreement in 1991.
Shanghai Advertising also has a joint venture with the Japanese company Hakuhodo, and its deal with WPP makes it the first agency that has capital investment from China, Japan and the UK.
Sir Martin Sorrell, chief executive of WPP, said: "The Chinese advertising market is the fastest-growing market in the world. Within the next 10 years, it is expected to become one of the top three markets. WPP has relied not only on the support of WPP companies, but also on direct investment. WPP will continue to increase its business portfolio in China and deliver the best service to our clients from every aspect."
WPP has been expanding its communications offerings in China, expanding its advertising and PR offerings to make Ogilvy Group the largest communications group in the country. It has also been expanding its interests in Korea.
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