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Chinese movie investors are stock market stars

Xinhua | Updated: 2015-07-29 09:57

Chinese movie investors are stock market stars

A screen capture from Monkey King: Hero is back.[Photo/Agencies]

Chinese film investors have enjoyed substantial gains in the stock market over the last three weeks as domestic blockbusters shined in the world's second largest movie market.

Shares in Lugang Science and Technology Co. have jumped about 63 percent since the debut of "Monkey King: Hero Is Back", the 3D spectacular it funded, on July 10.

The film has raked in around 650 million yuan ($106 million) in box office sales, overtaking "Kung Fu Panda 2" as China's most successful animated movie.

Lugang, a Jiangsu-based wool textile producer, entered the movie industry last year after acquiring domestic moviemaker Century Great Dragon.

"The dazzling performance of the Monkey King has greatly enhanced our reputation and increased the company's profits," Lugang said in its semi-annual financial report.

Another profitable Chinese movie, "Monster Hunt", has also brought wealth to its backer, Beijing Culture, a tourism company, whose shares have risen 25 percent in the last seven trading days.

The two companies became movie investors at a time when Chinese are spending more on leisure and entertainment.

In 2014, Chinese cinemas added 5,397 new screens, bringing the total number to 23,600 across the country at the end of the year. Total box office sales rose 36.15 percent to 29.6 billion yuan, while global growth was around 1 percent.

The government has offered tax breaks and financial support to movie-related businesses.

History was made on July 18, when China's box office sales and the number of moviegoers topped 400 million yuan and 11.4 million, both daily records.

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