Underlining the growinginterest in China as a production location, the country's first productionservices company Dragon Studios was launched this week at the AFM.

The company, which aims toprofessionalise and rationalise the Chinese industry, is a joint venture between Santa Monica andBeijing-based producer Peter Loehr, Er Yong, one of China's top line producers,He Peng, director of Cinerent, China's largest equipment rental company and thegiant Hengdian Group.

"Dragon Studios looks tobring a full range of resources to the table for our partners. Our strengths inproduction, direct representation of key crew, direct line to camera andlighting equipment and access to the Hengdian World Studios make us a uniqueone-stop shop." says Loehr.

Dragon studios will alsoserve as a below-the line and creative management company - signing China's top cinematographers, gaffers,production designers, editors to management contracts.

"Key creative crew are notprotected and represented in China, we look to remedy this situation," says ErYong. Dragon Studios has already signed over thirty of China's top creativecrew to management contracts.

Hengdian, which was part ofa production joint venture with Warner Bros announced last week, is China's third largest privately heldcorporation and the owner of Hengdian World Studios, the biggest back-lot inthe Asian region.