(Yicai Global) Dec. 4 -- Kunshan Pinmingfu Enterprise Management Co., a subsidiary of real estate giant China Vanke Co [SHE:000002; HKG:2202], contributed CNY1.05 billion (USD15.8 million) to a new fund focused on domestic media, entertainment, sports and film and television industry projects, named Suzhou Chinese Cultural Investment Center. The investment will help Shenzhen-based Vanke "to leverage the resources of external partners in the cultural field and accelerate investments in strategic transformation," it said in a press briefing on Saturday.

Set up in August, Suzhou Chinese Cultural Investment Center is a CNY7.52 billion equity investment fund, according to information from the Asset Management Association of China. It focuses on domestic media, entertainment, sports, film and television projects. Kunshan Pinmingfu Enterprise Management Co.'s investment represents 13.96 percent of the total.

China's real estate developers are shifting into other business sectors in search of new revenue streams and sources of profit growth. Internet titans Alibaba Group Holding Ltd. [BABA:NYSE] and Tencent Holdings Ltd. [HKG:0700] have also moved into the pan-entertainment sector, which is believed to have great potential.

Suzhou Chinese Cultural Investment Center's designated controller is Li Ruigang, a well-known media trader in China who is often referred to as the country's Rupert Murdoch. Li ran China's first private equity fund focused on the cultural sector, China Media Capital, which was formed in 2009 with CNY5 billion in assets.

Another property developer Dalian Wanda Group Co. Ltd. entered the cultural sector when it started developed cinemas in 2004. The firm has 478 cinemas in China, with 4,211 screens in total, as of the end of September. China Evergrande Group [HKG:3333] positioned itself as a group enterprise integrating cinemas, music, film and television, brokerage, distribution and animation businesses when it listed on China's New Third Board in 2015. The firm ended its listing last year.

Vanke said that the investment decision was is based on the company's development strategy to act as service provider for cities. "Taking into account the current market environment, the subsidiary of the company's investment in CMC will help the company to leverage resources of external partners in the cultural field and accelerate investments in strategic transformation."

Another property developer Dalian Wanda Group Co. Ltd. entered the cultural sector when it started developed cinemas in 2004. The firm has 478 cinemas in China, with 4,211 screens in total, as of the end of September. China Evergrande Group [HKG:3333] positioned itself as a group enterprise integrating cinemas, music, film and television, brokerage, distribution and animation businesses when it listed on China's New Third Board in 2015. The firm ended its listing last year.