Hong Kong superstar Stephen Chow is advising Taiwan's Cathay Securities Investment Truston an investment fund which aims to pump $65m into listed film companies.

The Cathay Global Entertainment Fund was announced at a seminar in Taipei on Friday (July 4) attended by Chow who is a senior advisor in the entertainment division of American Pegasus, the investment advisor of the fund. His most recent film CJ7 is the biggest hit at the Taipei box office so far this year.

The fund may only invest in publicly listed companies around the world, in the fields of film production, exhibition, distribution, home video rental and equipment manufacturing. It will not invest money in individual films or packages of films.

Fund manager Michael Lee saidthe fundis expected to launch in August, pending regulatory approval, and expects to announce its first investments in early September and on a monthly basis. While customers of Cathay United Bank can invest in the fund, it is also open through other channels including security brokers.

The exact amount of the fund will be announced after launch but will not exceed $330m (NT$10bn). Up to 20% of the fund will be allocated to film entertainment, 20% to other media, 20% to investments in wine and tobacco and a further 40% in tourism related businesses.

At the seminar, Chow joked that the Asian films that can best compete with Hollywood films are ghost films and kung fu movies. He became friends with Jeff Chang, president of Cathay Securities Investment Trust, through their mutual love of tai chi.