China launches 20b yuan cultural private equity fund (China Daily)

7 July 2011 23 h 01 min 12 comments

China has established the first State-level investment fund targeting the cultural industry as part of its effort to develop the sector. 

This government-backed private equity fund will invest in cultural industries such as media news and publishing, film and broadcasting, Internet entertainment and leisure, the Shanghai Securities News reported on Thursday.

The China Culture Industrial Investment Fund, launched by the Ministry of Finance and three companies, aims to raise 20 billion yuan ($3.09 billion) in the long term.

“The cultural industry still lacks vitality and companies find it hard to raise funding and invest in others; the fund is intended to ease these problems,” Vice-minister of Finance Li Yong said on Wednesday.

The fund has already raised 6 billion yuan. BOC International Holdings Ltd, a unit of Bank of China Ltd, China International Television Corp [CCTV] and Shenzhen International Cultural Industry Fair Co Ltd joined the ministry in starting the fund.

The establishment of the fund came after the cultural industry was highlighted in the Central Economic Working Conference last year as a key sector for development in the 12th Five-Year Plan (2011-2015).

The government is seeking to promote development of the sector as one way to transform its economic growth mode.  The China Culture Industrial Investment Fund is one of an increasing number of investment funds in the sector.

Many venture capital and private equity firms are also interested in the cultural sector.

“The market is full of potential but many cultural companies are not competitive enough to thrive. That’s why culture has to marry industry to make itself big,” Yu Feng, president of the Yunfeng Fund, a private equity fund, said in an earlier interview with China Daily. The Yunfeng Fund is also backed by Jack Ma, chairman of Chinese e-commerce giant Alibaba Group.

There were 150 investments in the media and entertainment industries in China between 2004 and the first half of 2010, according to the Zero2IPO Group, a Chinese research company. Among these investments, disclosed funding hit $1.68 billion.

The government encourages mergers, acquisitions and public listings in the cultural industry to help such companies expand.

Chen Shaofeng, vice-dean of the Institute for Cultural Industries at Peking University, said that some 120 to 150 companies in the sector might go public over the 12th Five-Year Plan period.

The fund, which was in touch with potential investors such as the national welfare fund, had already agreed to invest in China Publication Group and Xinhuanet.com, the report said.

SOURCES: China Daily (article 1, article 2), Agencies (7/07/2011)

Related posts:

Leave a Reply

You must be logged in to post a comment.

Other News

  • China (mainland) film Brilliant future expected for Chinese cinema: interview

    Brilliant future expected for Chinese cinema: interview

    Jiang Wen (R), a well-known Chinese director, walks down the red carpet with his wife Zhou Yun at the opening ceremony of the 70th Venice Film Festival in Venice, Italy, Aug 29, 2013. [Photo / Xinhua] (Xinhua, 04 Sep, 2013)Chinese films have achieved over the past few years very positive results in terms of both quantity and quality, and will drive their technology-led development, 70th Venice Film Festival president Alberto Barbera told Xinhua in a recent exclusive interview. This venerable [...]

    Read more →
  • Breaking news China (mainland) film Cloudary extends script to movie industry

    Cloudary extends script to movie industry

    (chinadaily.com.cn, 26 Aug, 2013) Cloudary Corp – an online literature platform owned by interactive media giant Shanda Group – said on Friday that it reached a film script agreement with the Chinese movie firm Seven Stars Films. Seven Stars Films, a movie production and investment firm owned by Chinese media entrepreneu r Bruno Wu, will link Cloudary’s literature with the world’s movie industry. Wu, who is married to popular TV host Yang Lan, founded Seven Star Films in 2012. The [...]

    Read more →
  • Breaking news China (mainland) film China’s movie market booms with local content

    China’s movie market booms with local content

    ( Agencies, 23 Aug, 2013) In “American Dreams in China”, Cheng Dongqing is giving a lecture in an abandoned factory in Beijing . Snow falls through the damaged roof and a power cut sends students reaching for their flashlights. The movie , about how young Chinese in the 1990s tried every means to learn English so they could study overseas, is part of a boom in domestic productions that is outpacing foreign film s at the box office in China. [...]

    Read more →
  • Breaking news China (mainland) film Fast forward with film

    Fast forward with film

    (China Daily, 23 Aug, 2013) In the past year, Chinese films have galloped ahead like a dark horse, beating Hollywood imports. It is hardly surprising that most of these domestic hits are comedies. Comedy is mostly local. When Hollywood sent scouts to recover the secret formula, many of them reported that these Chinese movies were not particularly funny. Of course not. When you translate every line into English, you have lost much of the fun, leaving only a few sight [...]

    Read more →
  • Breaking news China (mainland) Digital Mobile game firms looking abroad

    Mobile game firms looking abroad

    (China Daily, 21 Aug, 2013) Intensifying domestic competition is driving Chinese mobile game developers into overseas markets, said Google Inc, owner of the world’s most used smartphone operating system. Japan and South Korea may become “sizeable” money-spinners for developers in China in the coming years, it added. “Tapping into South Korea and Japan makes sense for Chinese developers, because both countries have a large smartphone user base and high sales volume in the mobile gaming sector,” said Ben Zhang, China [...]

    Read more →
  • Breaking news China (mainland) tv PPTV denies buyout rumors

    PPTV denies buyout rumors

    (chinadaily.com.cn, 14 Aug, 2013) Online video provider PPTV has denied rumors it will be jointly acquired by e-commerce giant Alibaba Group Holding Ltd and Hunan Satellite TV. “We have noticed related media reports. PPTV is operating independently, well, and we have nothing to announce at present,” PPTV told China Daily on Wednesday. A report from IT industry portal 36kr.com said on Wednesday that the prospective deal is almost closed, with the transaction reaching $400 million. It cited venture capital sources [...]

    Read more →
  • Breaking news China (mainland) film Film industry needs long tail to grow

    Film industry needs long tail to grow

    (China Daily, 15 Aug, 2013) The domestic film market registered record half-yearly box office returns of 10.9 billion yuan ($1.77 billion) in the first six months of this year, up 35 percent year-on-year, and there have been excited voices saying that the Chinese film industry is about to boom in the international market. However, box office success is just part of the industry’s chain, and without the further development of licensed movie merchandising, the Chinese film industry is still in [...]

    Read more →
  • Breaking news China (mainland) Digital New WeChat game becoming painfully popular

    New WeChat game becoming painfully popular

    (chinadaily.com.cn, 15 Aug, 2013) A new mobile phone game on WeChat, a social network app in China, is proving so popular that it’s causing hand injuries for many Chinese users. The game, which was recently introduced to WeChat’s 400 million subscribers, allows users to compete online with their friends in aircraft battles. Within two hours after the release of the game on Aug 5, there were more than 180 million downloads. But Zou Cheng, an orthopedic doctor at Hangzhou First [...]

    Read more →