China's Bona Pictures invests in Hollywood blockbusters "Avatar 3" and "Deadpool 3"

Chinese film company Bona Film Group has reached an agreement with US financial company TSG Entertainment Finance to invest in a series of upcoming Hollywood movies. It is reported that the agreement includes the upcoming "Avatar 3" and "Deadpool 3" movies. The agreement was signed on December 31, and the move is seen as an extension and expansion of the partnership between Bona and TSG that began in 2015.

In an earlier agreement, Boehner committed $235 million to co-invest with TSG in a series of films including "The Martian," "Independence Day 2," "The Greatest Showman," "War for the Planet of the Apes," "Miss Peregrine," "Alien: Covenant" and "X-Men: Apocalypse," most of which will be distributed by 20th Century Fox.

Such co-portfolio financing agreements often provide a certain level of risk management for movie studios. Financial institutions are largely passive investors and have little say in a film's creative process, but by investing in multiple projects they can expect to earn substantial returns.

Sino-US slate deals were common in the mid-2010s, when Chinese companies became actively involved in Hollywood as investors, financial partners and potential acquirers. But the situation has changed a lot after 2018. During this period, the United States and China have been locked in a trade and technology war, leading to a sharp reduction in cross-border commercial transactions. The rise of streaming has also forced studios to consolidate — with Fox being acquired by Disney.

At the same time, the box office of Hollywood movies in Chinese theaters is far lower than before the epidemic. Chinese films have come to dominate the domestic theatrical and streaming markets to the point where long-standing import quotas may have come to a standstill.

Yu Dong said in a statement: "We are very happy to maintain our eight-year cooperative relationship with TSG. Through further cooperation, Bona will become a new participant in the "Avatar" and "Deadpool" series through TSG, and maintain our investment in the "War for the Planet of the Apes", "Alien" series and more novel films to be released."