The Zheijiang province-based company, known as Qi Zheng in Chinese, specialises in consulting for business management, trademark promotion, forming market systems, special training and strategy management.
Headed by Kong Fanren, the team includes experts from such fields as human resources, journalism, research, psychology, marketing and academia.
Grey China boss Viveca Chan said the alliance was important as the 44 million population of Zheijiang was the next biggest adspend area after the main centres of Beijing, Shanghai and Guangdong province.
Grey now has four offices and three alliances on the mainland. "As we get more and more local clients, the question is how do we become the most localised agency in China," she said.
"Our approach, apart from building our own (offices), is to build and strengthen our network of alliance partners."
Grey formed another alliance in Nanjing earlier this summer and another would be formed next month, Chan said.