Beijing Municipal People’s Government has recently issued a notice for promoting private investments in cultural sector.

The “Notice on Several Policies on Further Encouraging and Guiding Private Capital to Invest in the Cultural and Creative Industry” include government’s relaxation of industrial and commercial registration requirements for private capital to invest in the cultural and creative industry, and will allow reconstructed old factory buildings or warehouses to serve as registered sites for business operation of enterprises engaging in the cultural and creative industry, or the restructuring of building of new cultural areas, such as theaters, cinemas or auditoriums.

In addition, for cultural enterprises with capital contributions in the form of intellectual property rights, the proportions of capital contributions of such enterprises may be independently agreed upon by the investing parties, and case where the government will allow tax exemptions and subsidies are set forth.

We do not know how much such circular will influence investors into enter in cultural and entertainment sector: the amounts allocated for the subsidies appear to be quite small, and most of the circular contains provisions still generic and stating “principles” that cannot be easily considered by an investors interested in entering into entertainment sector.

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