Financial Services Give the Cultural Industry a Helping Hand
In 2010, Shanghai municipal government promulgated the Implementation Opinions on Boosting the Prosperity of Shanghai’s Cultural Industry Through Financial Service. The measure put forth steps for optimizing the financing service environment in the cultural industry and implementing the central government’s requirements related to boosting the cultural industry with the support of financial services. The measures cover several aspects: increasing credit to the cultural industry, promoting direct financing for the cultural industry, cultivating insurance markets for the cultural industry, and enhancing facilitating measures related to boosting the cultural industry through financial services.
(ⅰ)Launching a Pilot Program of Intellectual Property Mortgage Financing
In 2009, the Shanghai Municipal Government issues the Implementation Opinions on Promoting Intellectual Property Mortgage Financing. It urged financial institutions to launch product innovations that would foster the granting of credit to the cultural industry through intellectual property mortgages.
(ⅱ) Enhancing Credit to the Cultural Industry
In 2011, the Bank of Shanghai and the Shanghai Cultural Development Foundation signed a strategic cooperation agreement with a credit line of 1 billion RMB. The funds were earmarked primarily as support for the creation of excellent works in Shanghai’s entertainment industry. When the foundation recommends top cultural enterprises, the bank grants credit to the endeavors on a priority basis, with favorable interest rates, after conducting risk assessment. In order to further support the cultural industry, the Bank of Shanghai in 2013 established a branch specialized in serving that industry and following through on recommendations from the foundation.
(ⅲ) Establishing Institutions Specialized in Cultural Industry Financing
Dongfang Huijin Cultural Industry Investment Corp was founded in 2007, specialized in providing guarantees for cultural industry financing. Its balance of guarantees in 2013 amounted to 350 million RMB. China Media Capital and Haitong Cultural Industry Investment Foundation have also been established and started investment operations.