On 20 May 2025, China Film Administration released the Regulations on the Administration of Hong Kong and Macao Service Providers' Investment in Film Production Business, which clarifies that Hong Kong and Macao service providers are encouraged to invest in and establish film production firms in China’s mainland carry out film production business.

According to the above Regulations:

1. Hong Kong and Macao service providers are allowed to set up wholly owned subsidiaries in China’s  mainland to carry out film production business.
2. Hong Kong and Macao invested enterprises that have been registered and established in China’s mainland can also carry out film production business by adding  the relevant business scope.
3. Films include feature films, animation films, educational films, documentary films, special films, virtual reality films, and other types of films.
4. Hong Kong and Macao invested film production firms can serve as the first producer and apply for film project registration and review.
5. The above regulations shall come into force from the date of release.

Prior to the release of the Regulations, foreign investors, investors from Hong Kong, Macao, and Taiwan regions are not allowed to invest in film production firms according to the Special Management Measures for Foreign Investment Access (Negative List) (2024 edition).

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