Film industry attracts new investors

Yang Dong, CEO of the Stars Wealth, speaks at the launching ceremony. [Photo by Chen Yingqun/chinadaily.com.cn]

As China's film industry continues to grow and attract investors a new fund has launched in Beijing.

The Tongkong Fugu Film Fund, worth 1 billion yuan ($161 million), has been co-established by the Shanghai-based Tongkong Investment Group and the Fugu Motor Corporation.

The fund, which will focus on developing an industry chain, will gather 100 writers, 100 directors and 100 actors to make films. It aims to be among the top 10 movie funds in China.

Zhang Baoguo, chairman of Tongkong, said that in the past two years China's film industry has been booming. Some movies with small budgets have been very popular and Chinese films have become more international.

Figures from the State Administration of Press, Publication, Radio, Film and Television of the People's Republic of China show that by the end of June, box office takings exceeded 20.3 billion yuan, a year-on-year growth of 48 percent.

"China's middle class lifestyles are gradually changing, people now have more spiritual and cultural pursuits," Zhang said. "Ongoing urbanization also provides new markets, such as second- and third-tier cities. All these factors contribute to a booming film industry".

Yang Dong, CEO of Stars Wealth, a subsidiary company of Tongkong, and also the financing platform of the fund, said the company has focused on real estate investment before, but they see the film industry as very promising.

Stars Wealth, established last April, has 16 offices in Shanghai and plans to have 150 across the country by 2017. The company has more than 40,000 clients and asset allocation is expected to reach 6 billion yuan this year.

The company has now 70 percent of its investment going into real estate, while the other 30 percent are for other industries, including culture and movie industries. From now on, clients, whether they are personal investors or companies, could buy their film industry related products and he believed this will be a good investment choice.

Yang says to diversify its financial products, Stars Wealth has also recently launched a new fund related to emigration to Australia, Canada and New Zealand. The company would help ensure security of the emigration capital for clients and also help them make extra profit out of their capital, so they can successfully emigrate and also make profits.

Next year, they will also start looking for investment overseas in areas such as real estate, investment fund and so on.