China’s massive Alibaba Digital Media and Entertainment Group (ADME) announced plans on Monday to invest $640 million in Hong Kong’s entertainment industry, with funding going toward movies, TV dramas, events, and training for the city’s young artists.

The “Hong Kong Cultural and Art Industry Revitalization Program” was launched on the first day of Hong Kong’s annual Filmart industry gathering, and it claims to have connected Alibaba with a number of major local players, including Edko Films, Media Asia Group, One Cool Group, TVB, Shaw Brothers Pictures, and Emperor Motion Pictures.

Among the projects disclosed was a plan for Alibaba Pictures to sponsor 20 local filmmakers’ education at the Hong Kong Baptist University Academy of Film.

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The Hong Kong government welcomed the decision, as it has prioritized the development of its entertainment industry in recent promotional and economic programs.

“We eagerly hope that ADME Group will work more closely with the film and TV industry of Hong Kong to develop new modes of cooperation, explore business areas, nurture new talent, and create rich and diversified content for film and TV, which will bring the development of our film and TV entertainment industry to the next level,” said Kevin Yeung, Hong Kong’s secretary for culture, sports and tourism, in a statement.

ADME’s most recent play in the Hong Kong markets was a huge success, with the company co-producing last year’s court-room drama A Guilty Conscience, directed by Jack Ng for the first time, which is now the highest-grossing local film of all time, grossing an estimated $14.7 million (HK$115 million) at the box office. Alibaba Pictures, based in Beijing, also used Monday’s ceremony to announce plans to create a second headquarters in Hong Kong.

Youku and Alibaba Pictures, both under the DME umbrella, have also announced new projects with Hong Kong partners, including Youku’s involvement in a second season of the popular local TV drama The Queen of News.

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Plans for the capital injection come as the Hong Kong film industry struggles to return to pre-pandemic box office levels — last year’s $183 million total was still 25% lower than 2019.

Monday’s announcement came as the local financial press reported that Alibaba Pictures Group Limited’s share price had fallen 17 percent in the previous 90 days, with an estimated loss of $153 million (HK$1.2 billion) in the previous seven days.