(Yicai Global) June 18 -- Huace Film and TV, one of China’s biggest entertainment media producers, and a government-based venture capital company intend to set up a CNY500 million (USD78 million) fund to invest in movies, television dramas and short videos, the Paper reported

Hangzhou-based Huace will contribute CNY395 million, while Shanghai Songjiang Venture Capital will put up CNY100 million, the report said today, citing the head of the new fund. Huace’s investment arm will chip in the remainder.

The fund will participate in digital post production and training of specialized talents and will mainly invest in films, TV dramas, short videos, and related fields. Its manager added that China’s leading short-video platforms are relatively mature outfits, but there is still an opportunity for niche players.

The fund will focus on Songjiang, a district of Shanghai where the film and TV industry is well established and that enjoys local government support. Some 565 production companies have moved to the area since the beginning of this year, 40 percent more than in the same period of last year.

Huace’s shares [SHE: 300133] ended little changed today at CNY6.01 (93 US cents) apiece.

Editor: Futura Costaglione