GSK said it would transfer technology for other vaccines to be produced by the joint venture, in which it would hold a 65 percent interest and would initially invest 20.1 million pounds ($30 million). It would invest a further 7.3 million pounds in 2015.

Walvax will invest a total of 13.8 million pounds, the announcement said.

Jiangsu Walvax is an affiliate of Yunnan Walvax Biotech Co., Ltd., China's second-largest manufacturer of Haemophilus influenza type b (Hib) conjugate vaccine.

"This collaboration will allow Walvax and GSK to produce lifesaving vaccines to help meet China's need for MMR vaccines," said Liu Hong-Yan, Chairman of Walvax. "The JV will strengthen our vaccine R&D efforts and build our capacity to increase children's access to vaccines, one of the most cost-effective health interventions available."

In June, GlaxoSmithKline also signed an agreement with Chinese biotech company Shenzhen Neptunus Interlong Bio-Technique Co., Ltd. to develop and manufacture flu vaccines.

GSK shares were up 0.9 percent at 1,230 pence on the London Stock Exchange.