"Greater efficiency" and "transparency" were recently identified by Steve Ransohoff as key benefits that he hopes to introduce into the Chinese film industry with Film Finances, the completion bond company that he is the co-president of.
Ransohoff announced the establishment of a Shanghai office at an event that was attended by prominent industry figures, including producer Jason Blum ("The Purge") and Cyril Drabinsky, vice chairman of Deluxe Entertainment Services Group.
Completion bonds are central to not only the film industry, but to other industries as well such as construction. Investors are more likely to get involved in a project that is rooted in such industries, as it means that a guarantor has been enlisted to ensure the completion of a project in exchange for a risk insurance premium.
Ransohoff said at the event that completion bonds were previously non-existent in China, explaining:
"Shanghai is the perfect place for us to have our offices . . . we hope that we will be able to bridge the gap between the parties so there will be more opportunities for filmmakers from China and elsewhere."
The co-president said that Film Finances will "provide the product that will make it easier for producers to access capital," and while co-productions will form the firm's emphasis in the beginning, it is aiming to expand its reach to include domestic Chinese films at some point in the future.
A domestic response was received from Hu Jinjun, the director-general of the Shanghai Municipal Administration of Culture, Radio, Film and TV, who said he hopes that the Chinese film industry "can take advantage of the finance center and free trade policy" in order to "build the Shanghai film industry and promote film prosperity."
The Shanghai film industry experienced a massive boost last year, as the 192 films that were registered represented a 95-percent increase from 2013.