On The Construction Of Multi - Level Cultural Development Fund System

Media industry is a subsidiary of culture industry. It is imposable to discuss challenges facing with media without observation on domestic culture industry policy. In China fiscal support from central and local government and bank loan are dominant financing source in cultural industry. A multilayer fund of cultural industry should be established to promote innovation of the cultural industry finance. The paper analyzes models of cultural industry fund worldwide and evolvement of cultural industry fund in China. It observes the necessity and feasibility of building up a multilayer fund of cultural industry. The thesis discusses an investment and finance model in which the fund raiser employs the portfolio management method to invest creative enterprises and boom the development of cultural industry. It proposes the concept and ways to establish multilayer cultural development fund system in China regarding to China’s cultural industry evolvement. The quantity study of the paper shows the important role of private equity in a sound cultural industry financing system, which provides empirical evidence for China to diversify the financing channel of cultural industry by encouraging private capital in form of PE investment to enter into cultural industry.The study highlights the importance of multilayer cultural fund for a booming cultural industry, in which central and local government fulfills its function in macro regulation, instruction and support for cultural development; Banks and insurance companies facilitate cultural industry financing by initiating cultural industry loan fund and collateral fund; Qualified media groups play a more active role of equity investment in cultural industry to increase capital return ratio and business competitiveness. PE funds focusing on cultural investment, as a vital market factor, optimize the allocation of cultural resource. The paper concludes that a multilayer cultural development system, involving diversified investors, should be employed to fulfill multi-functions of cultural industry finance. It will improve efficiency of fiscal support in cultural industry and meet differentiate financing needs of cultural enterprises.