Fosun, SFG agree film industry fund

Fosun International and Shanghai Film Group yesterday announced plans to establish an investment foundation to fund the production, distribution and screening of motion pictures and related products.

The strategic cooperation will enable the two companies to invest in movies and TV dramas from both home and abroad, they said.

"Fosun is confident about the prospects of China's film industry," said its Chairman Guo Guangchang.

"The partnership with Shanghai Film Group will help us pinpoint opportunities and use our resources to inject vitality into the industry," he said.

He declined to disclose the value of the foundation.

Under the deal, the two companies will also commit to introducing Chinese movies to overseas markets.

The partnership is the latest in a series of movie industry deals for Hong Kong-listed Fosun.

Last month, it increased its stake in film producer and distributor Bona Film Group to 20.8 percent, to become its second-largest shareholder, and made an initial investment in United States-based film production company Studio 8.

Established in 1992, Shanghai-based Fosun is a leading private firm in China with interests in the finance, real estate, tourism, pharmaceutical and cultural sectors.

SFG, with a history of more than 60 years, is China's largest movie producer and distributor. Its subsidiaries include Shanghai Film Studio, Shanghai Animation Film Studio, Shanghai Film Technology Plant and Shanghai United Cinemas.

China is the world's second-largest movie market, with box office takings last year of US$3.6 billion.