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China estimates 400 billion yuan added value in sports industry in 2015

(Xinhua) Updated: 2015-12-09 09:43

China estimates 400 billion yuan added value in sports industry in 2015

A personal trainer helps a client work out in a gym in Zhengzhou, Henan province. Photo provided to China Daily]

BEIJING - China's sports industry is expected to account for 0.7 percent of the GDP with an added value of 400 billion yuan ($62 billion) in 2015, a senior sports official said here on Tuesday.

"According to current situation, it is expected that by the end of 2015 the sports industry will basically realize the goal set by '12th Five-Year Plan', namly an added value of 400 billion yuan and accounting for 0.7 percent of the GDP," Feng Jianzhong, deputy director of the State General Administration of Sport of China (SGAS), told a press briefing.

"By 2020, the total scale of sports industry is expected to exceed 3 trillion yuan and the sports industry's added value account for 1 percent of the GDP," he added.

China's cabinet, the State Council, issued the "Suggestions on Accelerating Development of Sports Industry and Promoting Sports Consumption" last October, aiming to boost the development of the country's sports secotr and grow it into a 5 trillion yuan industry by 2025.

According to Feng, the SGAS has simplified administrative examination and approval procedures, rescinded examination and approval of commercial and mess sports events and reformed on large-sized sports venues operation and management system, including granting subsidy worth of 870 million yuan to 1,212 sports venues for free-of-charge or low-charge use by the public.

"Such moves have triggered high enthusiasm among the public to participate in sports and provided great business opportunities for the sports industry as well," Feng said.

In 2015, Wanda Group, a real estate giant in China, bought stake in Spanish La Liga champions Atletico Madrid, merged Infront and then bought World Triathlon Corporationin August, spending about 11.6 billion yuan in this area.

E-commerce titan Alibaba also showed great interest as they first paid 1.2 billion yuan for 50 percent stake in Guangzhou Evergrande, China's most successful soccer club and two-time Asian Champions League winner.

The Nasdaq-listed company, which have business cooperations with German champions Bayern Munich, Spanish giants Real Madrid and NBA star Kobe Bryant, then launched its own sports company in September to focus on professional sports.

Two other internet companies LeTV and Tencent jumped on the bandwagon by establishing respective sports companies as well, while Ti'ao Power has been designated as the cooperation partner of China Super League TV signal making and copyright sales at the prize of eight billion yuan for five years from 2016 to 2020.

"The sports industry has grabbed huge social attention, forming a good momentum characterized by active government drive and capital input," Feng concluded.

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