A US$100 million media fund to enhance China's entertainment industry has been unveiled at the Singapore Media Festival.

A memorandum of understanding has been signed by Yu Dong, founder of private equity company Tembusu and chairman of China's NASDAQ-listed Bona Film; Singapore private equity firm Tembusu Partners; and local media entrepreneur Calvin Cheng.

The Minister for Culture, Community and Youth and the Second Minister for Communications and Information, Lawrence Wong, was also present at the event.

The Singapore-based private equity media fund will use the country's legal framework and status as a financial hub to attract external investors. Anchor investors are expected to include Bona Film Group and Thailand's Chia Tai Group when the closed-end five-year fund is formalised on 31 March 2105.

"Singapore is the perfect place to launch this fund as it is not only a financial capital of the world, but also as the place where East meets West. This fund will allow foreign investors to participate in the fastest growing media and entertainment market in the world," said Yu Dong.

"China's media and entertainment industry is forecast to overtake Japan's by 2018, and become the second largest in the world, behind only the US. It is already the second largest film market in the world, and China's TV industry is set to surpass the UK and Germany by 2016 to also become the second largest behind the UK. This phenomenal growth in China will create many exciting investment opportunities."

Calvin Cheng, formerly a Nominated Member of Parliament (NMP), added: "I am excited about the establishment of this fund in Singapore and the boost it will bring to Singapore's media industry. The existing film and TV co-production agreement between Singapore and China opens up opportunities for the fund to invest in projects that involve Singapore-based media companies. In addition, we will be looking at media companies globally that have a 'China-story'; with the convergence of traditional media with the Internet, there will be many exciting new opportunities that will emerge from the vast Chinese landscape, and we will be looking to invest in the best of them. "