Hong Kong Government Launches New Film Production Financing Scheme 2.0 to Revive Industry

In an ambitious move to rejuvenate its beleaguered film industry, the Hong Kong Film Development Council (HKFDC) has introduced the “Film Production Financing Scheme 2.0.” This initiative is aimed at bolstering the local cinema sector as it grapples with the lingering effects of the COVID-19 pandemic.

The new financing scheme builds upon the existing 'Relaxation Plan,' a temporary measure rolled out during the dark days of the pandemic in mid-July 2020. At that time, Hong Kong's film production came to a standstill due to strict border controls and stringent health regulations. Although the industry experienced a resurgence over the past few years, box office revenues have yet to return to the levels seen before the pandemic struck.

The original Relaxation Plan was designed to amplify local film production, creating jobs and offering development opportunities. The scheme successfully funded 23 film projects, including the blockbuster 'A Guilty Conscience,' which raked in an impressive $12.8 million (HK$100 million) in 2023, marking it as the second highest-grossing film in Hong Kong’s history. Other notable projects include Philip Yung's 'Papa,' which premiered at the Tokyo Film Festival, and Jill Leung's romantic drama 'Last Song For You,' both of which achieved strong box office performances.

Financing Scheme 2.0 aims to enhance these successes by maintaining key features while introducing several upgrades. The revised scheme will continue to support film projects with production budgets up to $3.2 million (HK$25 million), but it raises the government’s maximum contribution from $1.16 million (HK$9 million) to $1.28 million (HK$10 million). Moreover, all qualifying applications will receive the maximum funding amount, which is set at 40% of the agreed-upon production budget, capped at $1.28 million (HK$10 million).

One significant change is that funding will be released at earlier stages of production. The government’s portion of funding will increase from 50% to 70% once principal photography commences, addressing cash flow issues that have plagued many productions. The new scheme will also expand the applicant and financier quota from two to four, encouraging broader investment participation while prioritizing investors in recovering half of their investment to mitigate financial risks.

“Since its launch in 2020, the Relaxation Plan has funded 23 film production projects, many of which have been well-received,” commented HKFDC chairman Wilfred Wong. “The optimized Financing Scheme 2.0 will further enhance the attractiveness of the financing options available and provide a strong boost to the film industry. I believe it will stimulate positive advancements in both the quantity and diversity of film productions in the future.”

Interestingly, even projects that did not receive funding from the scheme have achieved remarkable success, such as 'The Last Dance,' which tells the story of a Taoist priest and a wedding planner collaborating on a funeral business. This film has now become the highest-grossing Hong Kong film ever, amassing $18.3 million. However, despite this hit, Hong Kong’s box office in 2024 has experienced a 6% downturn compared to the previous year, indicating ongoing challenges as it remains approximately 30% lower than the pre-pandemic figures from 2019.

As the Hong Kong film sector stands at a crossroads, will the Financing Scheme 2.0 be the catalyst needed for a full revival? Only time will tell, but the prospects certainly have film enthusiasts buzzing with anticipation!