China takes its money to the movies

China's filmmakers received a boost on Thursday when the government announced support for the industry.

The measures include an annual budget of 1 billion yuan (163 million U.S. dollars) to support production of five to ten movies, according to a document by a number of ministries. The fund will support construction of digital cinemas mainly in the country's central and western regions.

The cultural development fund will specifically promote movie-making technology, help exports of Chinese films, invest in commercial productions and build film websites.

Sales of copies, copyright, distribution and venues in rural areas, will be exempt from value-added tax for five years.

Banks will be encouraged to lend to the sector, with financial leasing and equity financing expanded to make it easier for film companies to obtain credit.

Production companies will be encouraged to raise capital from the stock market through IPOs and corporate bonds, from banks and from investment funds. Insurance companies will also be encouraged to buy stakes in film companies.

China's box office revenue totaled 21.8 billion yuan (3.53 billion U.S. dollars) in 2013, up 27.5 percent. Domestic films led the annual box office charts, reversing the trend of 2012.

According to a report by EntGroup Consulting, a Chinese entertainment researcher, the China Film Group took 30 percent of the national market in 2013, followed by Huaxia and Huayi Brothers.

The number of movie theaters continued to expand last year, with theater chains adding 903 new cinema complexes, bringing the total number to 4,583.

This year's 17th Shanghai Film Festival form June 14-22 was attended by more than 400 celebrities and film folk including Nicole Kidman, Hugh Grant and John Woo.