Chinese Cultural Industrial Investment Fund

With China’s economic restructuring, Chinese cultural industry is getting increasing attention and rising in great demand. At the same time, the capital investment is highly needed because of its growing tendency to collectivize, to absorb external capital and to accelerate the structural reform. However, the problems of the narrow investment and financing channels and low efficiency in the use of funds have become the bottleneck for the development of Chinese cultural industry. Moreover, the traditional investing and financing methods do not work for the high-risk and high-yielding cultural industry based on intangible assets. Therefore, how to innovate methods of financial support is the common concern for the practice and theoretical study.The investment fund of cultural industry belongs to the innovative method of investment and financing for Chinese cultural industry. By means of issuing funds and the operation of professional fund management companies, it provides capital support and output management to the unlisted cultural enterprises. This paper involves the study and theoretical framework of the investment fund of cultural industry through the combination of positive analysis and normative analysis and the interdisciplinary systematic analysis method. The paper focuses on how to achieve the cooperation between the industrial investment fund and the cultural industry, market and government as well as finance and industry. This paper is divided into three parts as:the evolution of the investment fund of cultural industry, its operation mechanism and system building.With respect to the evolution of the investment fund of cultural industry, this paper, on one hand, explains that the development of cultural industry cannot be separated from the role of financial support; on the other hand, after discussion of cultural industry’s meeting the choosing standards of industry with financial support and the significance of developing the cultural industry, the paper states that the cultural industry is the target for industry with financial support and the finance acts on the cultural industry through fundraising, fostering innovation, allocating risk and revealing information and thus boosts the development of cultural industry. But the traditional investment and financing method has its disadvantages and nowadays the domestic financing structure is out of balance with the proportion of direct financing to be improved. Hence, it’s crucial to develop the innovative direct financing method fit for characteristics of cultural industry.Concerning the operation mechanism of cultural industry, in the light of the characteristics of cultural industry and the situation in China, the paper develops the related discussion through the operation processes of investment fund of cultural industry, its development strategy and performance analysis. The paper specifically proposes how to regulate the processes of fund operation considering risk management and efficiency. And it puts forward a detailed project about the fund development with innovation and the maximization principle of cultural industry. Finally, it demonstrates the comprehensive performance of investment fund of cultural industry from the macro, meso and micro perspective.As for the system building of investment fund of cultural industry, the paper will analyze it from internal system design and external support system. The internal fund system includes its organization, principal agent mechanism and risk-control mechanism. The external support system covers property transfer, multi-layered capital market and government support. The establishing and improving of the internal and external system prospers the investment fund of cultural industry and Chinese cultural industry.