Financing is a common occurrence in the film and television industry. Even major production companies like China Film Group actively seek other investors when launching large-scale projects. The reasons for seeking financing are complex, ranging from the need for celebrity and production resources to the desire to leverage the social connections of other investors. But, at the end of the day, it is always about sharing risk.
No matter how impressive a producer or production house is, they cannot guarantee that a project will actually get off the ground, that the actors or director won't run into a scandal, that the film will be released once completed, or that it will be profitable if it is released. A glaring example of this occurred in 2016, when Ningxia Film Group launched the fantasy film *Asura*. They cast heavyweights like Wu Lei, Tony Leung Ka-fai, and Carina Lau, and then... well, there was no "then." The film cost over 800 million yuan but only pulled in 45 million at the box office. Or consider the scandals involving certain actors, or the period of the Hallyu ban—many producers and financiers wanted to jump off buildings. Film production is a form of metaphysics; not everyone has a cheat code. Therefore, making financing the first step after a project is established has become a standard procedure.
But how do you go about financing? Generally speaking, producers use their connections to set up private equity funds, or in desperate cases, they might even resort to…
Chapter 440