| LOS ANGELES
LOS ANGELES Oct 16 Dalian Wanda Group plans to
announce a 40 percent production subsidy to attract Hollywood
filmmakers to its new multibillion-dollar studio in the eastern
Chinese city of Qingdao, a person with direct knowledge of
Wanda's involvement said.
Wanda Chairman Wang Jianlin is expected to unveil the
incentive at an event that he is hosting in Los Angeles on
The production rebate will be jointly funded by Wanda and
the local Qingdao government, said the person, who asked not to
The subsidy will apply to feature films and TV shows. Costs
eligible for the rebate include stage and equipment rentals, set
construction and local accommodations.
A Wanda spokesman declined to comment.
Wanda's billionaire chairman is building a footprint in
Hollywood through a series of deals, part of China's growing
investment in the U.S. entertainment industry. The company has
bought "Jurassic World" producer Legendary Entertainment and
U.S. cinema chain AMC Entertainment Holdings. Wanda also
signed a marketing and co-financing deal with Sony Pictures, a
unit of Japan's Sony Corp.
With the Qingdao studio, Wanda will be competing with dozens
of U.S. states and countries including Britain and New Zealand
that have lured filmmakers out of Hollywood with tax incentives
Incentives typically range from 15 percent to 45 percent of
certain production costs, according to tax incentive
specialists. That puts Wanda's subsidy among the world's
The Qingdao studio is part of a large theme park and real
estate development designed to become a Chinese version of
Hollywood. The studio will attract at least five films a year
with production budgets of more than $100 million, alongside
smaller Chinese productions, Wang told Reuters in August
Dalian Wanda is an entertainment and media conglomerate. Two
of its key listed units are Dalian Wanda Commercial Properties
and Wanda Cinema Line Corp.
(Reporting by Lisa Richwine; Editing by Cynthia Osterman)