Completion Guarantee Business for Film Industry

The finance forum was held yesterday. Pic by Wu Kai

□By Rich Zhu(Shanghai Daily)

China still needs mature film completion guarantee system to make the film production more standardized and industrialized, although our domestic market is growing in both film investment capital and box office, speakers told at a finance forum of SIFF yesterday.

The  completion  bond  helps movies  get  to the  big screen, which gives guarantee that films could be delivered on time and within expected budget. It connects investors and film producers on  budget and time schedule, according to Film  Finances Inc., a US-based firm with completion guarantee business history for more than 50 years.

Prior to the issuing of this ‘bond’, however, prospective clients must meet a series of stringent conditions and provide their script, production schedule, budget and finance plan.

If any situation arises, Film Finances reserves the rights to replace the directors, shut down the projects, and reimburse the financiers. These  abilities allow Film Finances to guarantee that financiers   can  receive  a  return  on  their  investment.

“The biggest obstacle is to get our feet off the ground,” said Katrina Stagner, the legal executive at the London branch of Film Finances, “China   has a well-established film industry that hasn\'t needed us. The greatest challenge is to prove that we could be a helpful resource.”

Completion guarantee is just in its infancy          stage in  China, but it’s really necessary for  film production process.  It  will make the whole industry more   standardized.

Recent films produced with Film Finances include Slumdog Millionaire (2008), The Hunger Games (2012), 12 Years a Slave (2013), Divergent (2014), The Grand Budapest Hotel (2014), and Kingsman (2015).

Film Finances, which has opened an office in Shanghai, will operate under Chinese laws for domestic films and negotiate on a case-by-case basis when working internationally.

Top Chinese directors and producers have used this new method when they promote the global expansion. The latest example is The Great Wall directed  by  Zhang  Yimou.