(Adds comment from Qingdao government spokesman)
By Lisa Richwine
LOS ANGELES Oct 16 China's Dalian Wanda Group
plans to unveil a subsidy scheme to attract Hollywood filmmakers
to its new multibillion-dollar studio in the eastern Chinese
city of Qingdao, a person with direct knowledge of the plan
The chairman of the property-to-entertainment conglomerate,
Wang Jianlin, is expected to unveil the scheme, which offers to
subsidise 40 percent of production costs, at an event hosted in
Los Angeles on Monday evening.
The subsidy will be jointly funded with the local Qingdao
government, said the person, who asked not to be identified.
The subsidy will apply to feature films and television
shows. Costs eligible for the rebate include stage and equipment
rentals, set construction and local accommodation.
A Wanda spokesman declined to comment.
A Qingdao government spokesman said he was not familiar with
Wanda's billionaire chairman is building a footprint in
Hollywood through a series of deals, part of China's growing
investment in the U.S. entertainment industry.
The company has bought "Jurassic World" producer Legendary
Entertainment and U.S. cinema chain AMC Entertainment Holdings
. Wanda also signed a marketing and co-financing deal
with Sony Pictures, a unit of Japan's Sony Corp.
With the Qingdao studio, Wanda will be competing with dozens
of U.S. states and countries including Britain and New Zealand
that have lured filmmakers out of Hollywood with tax incentives
Incentives typically range from 15 percent to 45 percent of
certain production costs, according to tax incentive
specialists, making Wanda's subsidy among the world's highest.
The Qingdao studio is part of a large theme park and real
estate development designed to become a Chinese version of
Hollywood. The studio will attract at least five films a year
with production budgets of more than $100 million, alongside
smaller Chinese productions, Wang told Reuters in August.
Two of the conglomerate's key listed units are Dalian Wanda
Commercial Properties and Wanda Cinema Line Corp
(Reporting by Lisa Richwine; Additional reporting by Jackie Cai
in SHANGHAI; Editing by Cynthia Osterman and Simon