Investigating approaches and policies for film financing: a case study of financing in the Chinese film industry

Document Type : Research Paper

Authors

1 Associate Professor, Department of Television, Radio and Television Production Faculty, IRIB University, Tehran, Iran.

2 M.A. in Film Studies, Department of Cinema, Faculty of Art,Soore International University, Tehran, Iran.

Abstract

In order to develop and make the film financing methods more efficient, this study aims to propose new solutions by using the global experiences. The developments of the Chinese cinema industry in recent years have been investigated and various types of film financing methods have been analyzed. The research method in this article is descriptive and qualitative, and documentary method and library and internet sources have been used to identify and compile the findings. At first, a picture of the current state of China's cinema industry in recent years and the changes that have occurred in corresponding to the increase in film production and demand in this country, are presented; then trends and the main challenges of the China's cinema industry at the present are explained. Furthermore, in the discussion and analysis section of the article, the recently approved laws and regulations in the field of film production and financing such as Film Industry Promotion Act are reviewed. In the next section, the main institutions of film production and financing including China Film Group, as the biggest public film production company in the country, and Shanghai Film Group have been investigated and their mechanisms and procedures are explained. Finally, in the last section of the discussion, the different types of financing methods in the Chinese cinema industry have been examined and analyzed in details.
According to the findings of the research, the success and growth of the cinema industry in China, in addition to financial resources, reflects the empowerment of the creative sector for the production of higher quality films in all aspects. Also, clarifying and standardizing the regulatory laws and strengthening the laws supporting the film industry and increasing the return rate of investment have encouraged the cinema industry to flourish more. In the field of sources and financing methods, more than ten different methods for financing films are identified. The most important of these methods are: direct financing through public and government budgets which includes funds like: special fund for the development of the national film industry, film and television mutual fund, imported film revenue fund, special film subsidy on major subject matters and other indirect and special financing for films which includes: production incentives such as tax credit, tax rebates, cash rebates and tax shelters; joint investment and financing between national production companies or with a foreign production company; crowdfunding in mostly new and online platforms;  financing from the stock market; bank loans; financing funds from other industries; and pre-sale. Also, other methods such as private equity, sponsored financing, venture capital and hot money were also identified, which are relatively less important than the main methods. In general, it can be said that the diversity of financing sources in this country has increased film production and improved the diversity and compatibility of China's domestic cinema market. Among the main financing methods identified, direct investment by public or private companies, loans provided by financial or investment institutions, and foreign investment and joint productions are more important than others.
 

Keywords

Main Subjects

References

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Journal of Fine Arts: Performing Arts & Music
Volume 30, Issue 2
July 2025
Pages 57-70

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