China Media Capital, an investment fund in media and entertainment, has bought a minority stake in Creative Artists Agency, the world's leading entertainment and sports agency.
The investment marks an increasing cross-border partnership between Chinese funds and overseas entertainment giants.
"Our deep partnership will benefit the development of both the US and Chinese markets, with CAA helping CMC enter the US market and CMC assisting CAA to upgrade its agency business in China in today's digital world," CMC Chairman Li Ruigang said in an announcement yesterday.
Financial details of the deal were not disclosed.
Li will join CAA's board of directors, and the two partners will also form a Chinese media and entertainment joint venture called China CAA as a part of the collaboration deal, said a joint statement.
CAA China, majority-owned by the US partner, will focus on talent representation and endorsement, focusing on sports, digital media, music and content production, the two firms said.
Teaming up with CAA is set to create a pipeline allowing for an influx of talent and innovation into the Chinese media and entertainment market.
China's box office grew 3.2 percent last year to 45.3 billion yuan (US.6 billion), said box office tracker EntGroup, but the growth pace fell from 50 percent in 2015.