Private equity firms dazzled by cultural returns
By Cai Xiao in Shaoshan,Hunan province (China Daily) Updated: 2014-05-28 06:56Big-scale productions at historic and scenic sites attract major investments
Cultural performance investment in Chinese tourist destinations has become popular among private investors, financial experts say.
Leading private equity firm China Science and Merchants Capital Management Co Ltd regards cultural performance investment as its new focus, with funding recently taking place in Shaoshan.
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The firm has invested 600 million yuan ($96 million) in the Red Culture Tourism Group in Shaoshan, Hunan province.
Shaoshan is the hometown of Mao Zedong, former leader of the Communist Party of China, and it attracted an estimated 10 million tourists last year.
The theatrical production, which is based on Mao's life, features many high-end touches in terms of technology, theatrical effects, stage and equipment.
"We will invest 5 billion yuan with other investors in the cultural base of Shaoshan, and the annual revenue may be more than 1 billion yuan," Shan.
Shan told China Daily that they will invest more than 600 million yuan in another production in Shenzhen, China's first special economic zone.
The topic will be Deng Xiaoping, a reformist leader in China. In 1992, Deng toured southern China to reassert reform and the opening-up policy.
Another theatrical production will be developed in Shanghai, depicting the history of the city from 1843, when it was open to foreign trade.
A detailed timetable of the performances will be released later.
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