With the gradual decline in the real economy and the vigorous promotion of cultural industries by government, the entertainment industry has gradually become the investment hotspot as evidenced by the merger and acquisition that has taken place at the capital market.

The research team at ANBOUND Consulting, however, warns that the investment in the non-core businesses such as entertainment industry shows that there is certain level of distortion in the domestic investment.

The underlying reason is that there is a surplus of capital and yet there is a shortage of asset investment, resulting in the surplus capital to chase after the tailwind.

In order to change this situation fundamentally, market-oriented reform is needed so that more capitals can be vested into the real industries.