China has decided to set up a special fund to support domestic film industry, promising financial support to making of excellent domestic movies, according to a regulation jointly released by the Ministry of Finance and the State Administration of Press, Publication, Radio, Film and Television Wednesday.
The regulation said that movie special fund would be used in such sectors as upgrading facilities in cinemas, development of major film production bases, film production and distribution, and upgrading of domestic film ticket selling system.
Meanwhile preferential tax policy will be adopted on film screenwriting, shooting, distributing and showing, according to the draft law for promotion of movie industry reviewed by the executive meeting of the State Council on September 1.
Market observers noted that all the supportive policy would further expand the film-making market in China. Estimations show that Chinese film market may have a size of over 160 billion yuan at maturity, nearly 5 times larger than the existing one.
Domestic film market has been heating since the beginning of this year, with 256 films released by September 7 and box office totaling 30 billion yuan, 46.78 percent more than that of year earlier period. The box office is likely to reach 40 billion yuan this year, predicted market observers.
Among the A-share listed companies, Wanda Cinemas (002739.SZ), the film arm of Wanda Group is likely to benefit from those policies.
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