The Chinese cinema market is becoming increasingly important to the world economy. (Photo : IMG)
As part of the Chinese cinema chain's plan to win over the domestic market, Stellar Media International has issued securities backed by its future ticket sales, as reported by China Business News.
The funds that will be raised through the securities, reportedly amounting to 1.35 billion yuan, will be used to finance the endeavors related to the cinema chain operator's ambitious plan.
On Aug. 4, the Hong Kong-listed firm released the securities via the Shenzhen Stock Exchange.
CEO Cheng Chi-chung said that the domestic film market "is expected to surpass that of the United States in two years," adding that their company's move will aid in their plan to build more cinemas.
Stellar Media eyes to snatch the lead from Wanda Cinema Line as China's biggest cinema operator.
By the end of this year, Stellar Media plans to have its number of cinemas increased to 180 up to 200, as the firm expects that the local market will yield higher returns in the next five years.
For the first half of 2015, the local market has already pulled in a total of over 17.5 billion worth of box-office sales, a 55-percent increase from last year's period.
Consulting firm Entgroup's EBOT service data also showed that over the same time span, 600 new theaters with 2,449 screens were able to enter the market.
Shi Chuan, vice chair of a Shanghai-based film industry group, predicted that if the trend continues, the country will surpass the United States' 40,000 screens.
Nonetheless, Shanghai Film Group president Ren Zhonglun noted that in spite of this increasing consumption, China still has got a long way in terms of technology, industry scale, content and training of filmmakers.
