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Warner Bros to set up movie venture in China
(Agencies)
Updated: 2004-10-15 16:40

US film giant Warner Bros said it will set up its first movie production joint venture in China with state-owned China Film Group and the privately run Hengdian Group.

warner bros,china
Security guard directs traffic outside Warner Bros studio in Los Angeles. The US film giant said it will set up its first movie production joint venture in China with state-owned China Film Group and the privately run Hengdian Group. [AFP]
The new company, Warner China Film, will produce, market and distribute Chinese-language feature films, TV movies and animation, under new rules issued in December that permit foreigners to invest in film and television production companies, a joint statement said.

Warner will hold 30 percent of the new venture, while China Film Group, the country's largest, will own 40 percent, with eastern Zhejiang province-based conglomerate Hengdian Group taking the remainder.

The deal marks Warner Brothers' fifth in China in less than two years as the Time Warner Inc unit seeks to capitalise on China's growing affluence and appetite for films.

Foreign entertainment companies have been eager to invest in the world's most populous country, eyeing a potential market of 1.3 billion consumers.

Similarly, Chinese companies are eager to tap foreign financing and expertise.

Until the recent rule changes allowing overseas producers to own up to 75 percent stakes in Chinese film companies, Sino-foreign productions could only sign on to one movie deal at a time.

"Warner China Film marks a new milestone for the Chinese film industry and demonstrates that it is quickly opening to foreign investment and is ready to take its rightful place in the global entertainment business," Yang Buting, Chairman of the China Film Group, said.

Production budgets will range 12-50 million yuan (1.5-6.0 million dollars) for feature films and 1.7-2.5 million yuan for TV movies.

Warner Bros' latest expansion in China follows plans to build 40 movie theatres by 2008 through local partnerships as well as a deal with state-run Chinese Audio Video next month to open video sales and rental shops in leading cities.



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