Site of the Forum on Investment and Financing: Breakthroughs and Navigating Challenges in Film Investment and Financing

 

Yu Junsheng, Deputy Director of the Publicity Department of the Beijing Municipal Committee of the Communist Party of China, Secretary of the Party Leadership Group and President of Beijing Radio & Television Station, and Vice Chairman of the Organizing Committee of the BJIFF

"The National Film Work Conference has just ended, and the inspiring speech by Comrade Hu Heping, Deputy Head of the Publicity Department of the CPC Central Committee in charge of routine work, has sounded the rallying call for the construction of a strong film power", Zhang Pimin pointed out in his speech that the construction of a strong film power still needs more efforts in both the legal system and the financial system. "The financial system determines the confidence of investors. How we establish an open, transparent, fair and good cycle of investment and financing system is a new topic to be solved in our new journey".

 

Zhang Pimin, Chairman of the China Film Foundation and former Vice Director of the State Administration of Press, Publication, Radio, Film and Television of the People's Republic of China

Huo Xuewen pointed out in his speech that the cooperation between finance and film must be a strong combination. Bank of Beijing has been associated with film since 2006, and has cumulatively issued 30 billion yuan of loans for more than 1,000 film enterprises, and will continue to promote high-standard, diversified and deep financial innovations in the future to run in both directions, integrate and empower the film industry. "I hope that the Forum on Investment and Financing will develop into a platform for filmmakers, financiers, producers and audiences to get together more closely and I hope that the development of the film industry will become an important source of cultural self-confidence in the hearts of everyone."

 

Huo Xuewen, Secretary of the Party Committee and Chairman of Bank of Beijing

 

Yu Dong, Founder and Chairman of Bona Film Group Co., Ltd.

Wang Yibing, who has been dealing with young filmmakers for a long time, said that the most obvious feeling in the last two years is "lack of money". He believes that the non-standardized and non-quantifiable nature of film products is the reason why many young directors have difficulty in financing. "For investors, it is more based on the perceptual knowledge of the script and the person who seeks funds." He said that it is most important to help young filmmakers gain the trust of investors. Meanwhile, we should also help investors manage the production standards of the project, so that the lack of money will not become the biggest regret of the film creation.

 

Wang Yibing, CEO at Dirty Monkeys Studio and Super Lion

As a director, Zhang Mo put forward that "the demand of film investment and financing is capital, and the pain point is time" from her personal feelings as a creator. In her opinion, although some scripts are flowing in the market, there are only a handful of projects can be produced into films, and because the films with small and medium budgets are unable to get financing. "The immediate problem caused by the fund shortage is the greatly shortened creative cycle, which makes the excellent creation greatly reduced, thus seriously affecting the healthy and virtuous cycle of the film production industry". Meanwhile, she also suggested that new technologies such as AIGC can be actively embraced to minimize costs without compromising on content creation.

 

Zhang Mo, a director and screenwriter

 

Catherine Ying, Vice Present of CMC Inc., and President of CMC Pictures and Pearl Studio

Gillian Zhao said that there are two reasons why it is difficult to raise funds: the investors with actual investment have not earned any money, and the investors with funds in pockets do not have confidence. In this regard, on the one hand, we should pay attention to all other channels of income, such as derivatives and theme parks apart from the box office; on the other hand, we should learn to share the risk: "shift from the high risk of investment on a single film to the overall investment on the directors with a series of works., which is not only for the security of the investment, but also a great support for the directors with film creation". In addition, she also suggested creating a guarantee mechanism for film completion with Chinese characteristics, and establishing a third-party private film completion guarantee organization trusted by the government.

 

Gillian Zhao, former President of Warner Bros. Discovery in China

Dai Wei showed the investment willingness of capitals beyond the industry from the perspective of a financial institution. Regarding the delicate relationship and solutions between the film producers and the bank, he said, "the financial support is not based on a single film, but on an enterprise. Directors and producers are always concerned about the box office, while the financial party will favor more reliable institutions and teams, thus avoiding the risk of a single film." He believed that only if the film and finance are guaranteed by more complete industrial chain at the same time, they can better trust each other and go further on the road of development.

 

Dai Wei, Vice President of Bank of Beijing

 

Beijing Film Industry Development Investment Fund Plan Released

Under the joint witness of Yu Junsheng, Zhang Pimin, Huo Xuewen and many other leaders and guests at the forum, Yu Deli, Li Weiqiang, Huang Qunfei, Dai Wei, Zhu Yuqing and other main initiators of the fund and the participants went on the stage to launch the program. Li Weiqiang said, "The establishment of the fund is based on the fact of difficult financing in the film industry, the double guarantee of the investment decision-making committee and the professional committee, and the packaged capital injection of more projects in a longer period of time to realize a greater return while helping the construction of a strong film power and the prosperous development of the film industry"; Huang Qunfei appealed on site, "The release of the program has enhanced the confidence and hope for the filmmakers, although this is only the first step. I hope that more friends in the industry can strongly support and participate in the program for the better future of Chinese film industry"; Yu Deli said that the establishment of the fund in Huairou will empower the construction of China's film capital, "I expect the fund to be established in Huairou to drive the prosperous development of film and television culture, and attract more film and television enterprises and talents for development here"; Dai Wei said that Bank of Beijing will give full play to its experience in cultural finance and fund trusteeship to provide financing support for the fund and help more high-quality films to be filmed and produced; Zhu Yuqing said, "Poly has been deeply engaged in film investment and financing for many years, and has accumulated detailed investment and financing data and rich experience, which will provide guaranteed services for the fund's investment advisor. At the same time, the fund will also cooperate with funds in Sichuan, Chongqing, Zhejiang, Fujian, and other places, to make due contribution to the construction of a strong film power.” Meanwhile, the fund also announced the first batch of films to be invested, The Voyages of Zheng He: The Vast Sea, Exploring the Moon, 731, Break Through, Transfer, Eighty Minutes of Light, and other styles of films are expected to be supported.

 

　　China Film Investment and Financing Development Report 2023 Released and China Film Investment and Financing Development Report 2024 Started

The release and interpretation of China Film Investment and Financing Development Report at the Forum for Investment and Financing is of great interest to the industry every year. On the site, Zhu Yuqing, editor-in-chief of the report, brought the latest trend interpretation, "China's film investment and financing market in 2023 presents six characteristics and trends: the overall industry market is rapidly warming up, and the production capacity is rapidly pulling up; the capital market is under slight pressure, and film and television sector is growing in reverse; the recovery signal conduction is delayed, and the private financing is slightly lagging behind; the content creation returns to the mainstream, and the enterprise financing returns to rationality; investment institutions continue to have a try, and the willingness of capital cooperation is strengthened; the schedule for bank-enterprise cooperation is stable, and the guarantee conditions are gradually relaxed". He believed that the current integration of culture and tourism is an important aspect for films to attract investment. Film must actively integrate with more industries and formats and play an important role in building a big cultural power. At the site, Zhu Yuqing, Zhang Pimin, Li Weiqiang, Huang Qunfei, Li Tingwei, Song Weicai, Qiu Lin and other major participants in the report jointly released the China Film Investment and Financing Development Report (2023) and launched the drafting of China Film Investment and Financing Development Report (2024) at the same time. 

 

"Drama and Film Program" by Bank of Beijing Launched