HKTDC's Benjamin Chau outlines the free trade benefits enjoyed by Hong Kong filmmakers
	Cai Xinmu explains cinema's attraction for Chinese audiences
	Liu Zhuokeng stresses the need to promote co-production

Hong Kong-made movies enjoy a high reputation internationally, but some of the most exciting opportunities lie next door, in the Chinese mainland.

At the recent FILMART international conference on CEPA: Updates on the Guangdong Film Market, participants heard that mainland audiences are hungry for Hong Kong movies, and that the benefits available to local filmmakers under the Closer Economic Partership Arrangement (CEPA) widen distribution channels.

Creative industries including filmmaking are among the 90 per cent of Hong Kong exports enjoying zero tariffs under CEPA. Overseas filmmakers can access the benefits by partnering with, investing in or buying into a CEPA-qualified Hong Kong.

Since 2006, CEPA has made it easier for Hong Kong films to enter the coveted Chinese mainland, adding a potential market of 70 million viewers to Hong Kong's seven million base. The free trade agreement also gives Hong Kong movies unlimited access to the mainland market.

Seize the opportunity

Benjamin Chau, Assistant Director of the Hong Kong Trade Development Council (HKTDC), explained that Hong Kong movie makers enjoy a competitive edge as they are exempt from quota restrictions that apply to other countries. "We need to seize this opportunity," Mr Chau told the conference, noting that 23 Hong Kong production companies had already received certification under CEPA.

Panel member Cai Xinmu, General Manager of Shenzhen Film Distribution & Screening Co, said cinemas provide an important venue for China's increasingly affluent population, he explained. In Shenzhen, Hong Kong's closest mainland neighbour where 20 years of rapid economic development had created one of the most populous cities in China, box office takings grew 54 per cent last year.

Under the CEPA framework, said Mr Cai, companies like his will be able to bring more Hong Kong-made movies to the mainland. "We have been in close contact with relevant producers and associations in Hong Kong, building up our contacts in hopes of introducing new policies for distributing Hong Kong movies in Shenzhen."

Endless opportunities

Since 2007 his company has identified 20 movies for potential distribution in the mainland. "We are very happy the Hong Kong government has offered HK$300 million (US$38.5 million) to promote Hong Kong movies," said Mr Cai, referring to a series of measures, under the Film Development Fund, announced in last year's budget.

Mr Cai added that since Guangdong's population is 10 times that of Hong Kong, the opportunities are endless.

Jiang Bao Shan, General Manager Assistant of Guangdong Film Company, described movie revenue as an extreme force in China. Increasing consumer spending power was reflected in the box office, with 2007 imported blockbusters such as Transformers, Harry Potter, Pirates of the Caribbean and Spider-Man 3 setting new records.

Xu Binbiao, General Manager of Guangdong Zhujiang Cinema Circuit Co Ltd, spoke about opportunities for cross border co-operation. "Under CEPA, with the restrictions relaxed, I see no problem with directly recommending some Hong Kong movies for distribution in China," Mr Xu said.

Promoting co-production

Liu Zhuokeng, Deputy Director of Shenzhen Municipal Bureau of Radio, Film and Television, stressed the need to promote co-production. "Hong Kong and Shenzhen have a very close relationship, and as long as production companies are not losing money, I would encourage them to co-produce," Mr Liu said.

Mr Liu also suggested using existing resources. "There are a few thousand films in Hong Kong – some old, some new. We should look at these resources to see which have the potential to be shown in the mainland."

Mr Liu called for increased communication between Hong Kong and Guangdong to speed up the distribution process.

Star power

Mr Xu said more promotion was needed, flagging a role for Hong Kong celebrities. "Hong Kong movie stars are quite influential, and could help establish a brand name that is favourable to us," he said.

Hong Kong's hottest names include martial arts superstars Jackie Chan and Jet Li, who during FILMART held the first worldwide press conference of their first movie collaboration, The Forbidden Kingdom. Billed as a "blockbuster-to-be", the US$75 million Emperor Motion Pictures production co-starring an American boy is the biggest movie ever made by a Chinese movie company. It is scheduled for release in Asia on April 24.