China's central authorities have introduced new rules that allow service providers from Hong Kong and Macao special administrative regions to establish film production companies on the mainland, as part of efforts to deepen industry cooperation and boost filmmaking.

The regulation, issued by the China Film Administration, permits qualified investors to set up and operate production firms under China's existing foreign investment and business registration frameworks. These companies will be allowed to produce a wide range of content, including feature films, animation, documentaries, and virtual reality productions.

Newly established firms may act as lead producers and apply for project registration. Existing Hong Kong- or Macao-invested enterprises may also apply to expand their operations to include film production, pending regulatory approval.

The measure, which took effect on Monday, follows recent revisions to service trade agreements.