BEIJING - The first ever China-UK Film, TV and Media Investment Fund has been established to provide financial support to give British film and TV practitioners working in China.

A memorandum of understanding was inked in London last Wednesday during President Xi Jinping's state visit to Britain, according to a statement jointly issued by Beijing Zhongze Culture Industry Co. Ltd. and Propeller Culture and Media (Beijing) Co. Ltd. of China, along with Pairstech Capital Management LLP and Varcale Management Ltd. of Britain, which jointly set up the fund.

Both governments have endorsed the fund and offered assistance.

According to the consortium, initial seed investment of 50 million pounds has been secured, with 50 percent to be provided by each side by early 2016. The fund is expected to increase to 1.5 billion pounds by 2020, thanks to collaborations between strategic investors and co-production partners in Britain and China.

Chai Sen, chairman of Beijing Zhongze Culture Industry Co. Ltd. and executive director of Propeller Culture and Media (Beijing) Co. Ltd., described the cooperation as "an golden deal in golden times."

"The fund will undoubtedly bring together the very best of industry knowledge, talent, technology, experiences and business opportunities from the UK and China," he said.

The fund followed the signing of a Film Co-production Agreement between both governments in April 2014, which "encourages the making of films that reflect, enhance and convey the diversity of culture and heritage in both countries."

Industry analysts said the two countries' film industries complement each other. Britain's advanced and highly developed cultural industry, however, is held back by a lack of funding.

China has the world's second largest film market, yet, there is room for improvement for it to receive international recognition.

A documentary on Confucius was released last week, one of the many Chinese-British cooperations.