Hony to set up China film fund with Shanghai Media Group

The vehicle will invest in TV series, film production and private equity investment, according to Xinhua News Agency.

"We not only bring in capital, but also resources," said John Zhao, CEO of Hony Capital. Following investments in Hunan Broadcasting, Jiangsu Phoenix Media and Beijing-based Uyoung Media, he said this new fund represents another allocation to cultural industry investments.

Zhao expects these investments to boost film industry innovation and help improve the structure of the domestic industry to international standards.

In the last 18 months, a number of private equity funds have been launched to finance China-based movie co-productions. These include government-backed China Mainstream Media National Film Capital Hollywood Inc and Harvest Seven Stars Media, an $800 million vehicle established by Chinese television production firm Sun Media Group and Harvest Fund Management.

SAIF Partners and IDG Venture Partners also teamed up with Hollywood entertainment company to launch a fund that will produce and distribute China-focused film content.

China is now the world's second-largest cinema market, with box office receipts rising 29% year-on-year in 2011 to reach $2.1 billion. However, investors have found extracting returns to be challenging due to the lack of an established, uniform mechanism for collecting box office takings.

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• Topics
• Greater China
• Media
• Expansion
• Hony Capital
• China
• Media
• IDG Ventures
• SAIF Partners