Chinese investment in the United States has seen growth not only in size and volume but also in expanding categories beyond traditional manufacturing-related industries.

Now, it's Hollywood.

In a recent partnership, China's investment conglomerate Fosun Group joined forces with LA-based Studio 8 and Sony Pictures Entertainment (SPE), the American entertainment arm of Japanese media company Sony, on more Studio 8 film distribution by SPE.

Studio 8 expects to raise $1 billion in overall financing, while the partnership will also include Fosun's involvement in developing entertainment content.

Jeff Robinov, ex-Warner Bros Motion Picture Group president and founder and CEO of Studio 8, will work closely with Fosun Group on developing TV and digital content, establishing versatile multi-platform distribution opportunities and collaborating with global production and brand-based properties, including those in the Chinese market.

"As the Chinese market continues to grow, Studio 8's partnership with Fosun will help build a truely global multi-media company," said a spokesperson of Studio 8. "Companies in the US entertainment business can help bring expertise, experience and relationships to Chinese investors."

Maggie Huang, managing director of the pictures, entertainment and derivatives division of Fosun Group, said the company's decision is based on the booming film industry in the world's two largest economies, which are also the world's two largest motion picture markets.

"Based on the agreement and investment with Studio 8 and Sony, we hope to set up a bridge between the US and China, so that the two markets can learn from each other, exporting high technology expertise and sophisticated film-making techniques and the matured Hollywood system and know-how from the US to China, and absorb more good quality Chinese stories and elements in co-production films," said Huang.

Huang said Fosun's tapping into the entertainment business is not just about expanding the firm's investment portfolio but rather an investment "vision".

"[It's] combining China's growth momentum with global resources. It will also drive the development of the Chinese film industry, as well as the worldwide film growth," said Huang.

Established in the early '90s in Shanghai, Fosun has established business in the healthcare industry and real estate. The company made headlines by completing its $725 million purchase of the 60-story tower at One Chase Manhattan Plaza in Lower Manhattan in New York last year.

Chinese entrepreneur Guo Guangchang, a co-founder of Fosun, has expanded the company from a pharmaceutical-business focused operation to a global conglomerate with investments in Chinese real estate, mining, retail and now the entertainment. In June, Fosun announced its investment in Studio 8, which followed by setting up an investment fund with Shanghai Film Group on film production and distribution.

Huang said Fosun enjoys its "global capability" of investing across markets and sectors based on the company's comprehensive financial capabilities.

The strategy is showcased in Fosun's investment deals in the US.

"New York is famous for financial and property business and LA represents the entertainment industry," said Huang. "We hope that we can invest in the best industries in the world, which suits our core investment philosophy, regardless of its location or sector."

Fosun is not the only Chinese company that has made a foray into the US entertainment business. China Movie Mediain June announced that it will open its firstUSoffice inLos Angeles, following Shanghai-based Mili Pictures Worldwide's launch of an LA office.

Chinese firms spent $2.1 billion on 35 direct investment transactions in the US in the second quarter of 2014, according to the New York-based Rhodium Group, a consultancy that tracks Chinese overseas investments. The group also sees greater activity in travel, financial services and the entertainment industry.

Lindsay Conner, a partner and co-chair of entertainment and media practice at the Los Angeles offices of Manatt Phelps and Phillips LLP, said Chinese investors in the US entertainment industry gives them potential to gain huge revenue opportunities and to reach larger audiences for business.

"Chinese companies can provide much-needed capital for Hollywood companies, which require significant expenditures to produce and promote films, television programs and new media content," said Conner.

"Chinese companies can also facilitate bringing this content into China, which will soon be the largest film market in the world, and can advise Hollywood on the kinds of themes, programs, and stories that will resonate with Chinese audiences," he added.

Contact the writer at yuweizhang@chinadailyusa.com.

(China Daily USA 09/10/2014 page2)