There is no better place in China than Shanghai to play host to a grand film festival.

After all, the city is the birthplace of the country's first filmmakers and audiences in the early 20th century, thanks to its favorable position as an international port and its Western influences, including those from films. The city is also populated, wealthy and educated enough for the film industry to thrive.

Nearly all of China's major filmmakers lived in Shanghai during the 1920s-'40s. Shanghai alone boasted more than a quarter of China's audience during the period.