CITIC plans to invest 150 million U.S. dollars in the studio and become one of the largest shareholders, while also setting up a branch in Beijing.
The joint venture plans to make three films in the next three years at its Beijing studio, which will combine Chinese stories and Hollywood techniques.
CITIC announced last month that it is the sole investor in a Hollywood film, which will be directed by Oscar winner Paul Haggis and begin filming this year in Britain.
The film, a screen adaptation of the best-selling "Ranger's Apprentice" series by Australian author John Flanagan, is expected to rival the Harry Potter series in its success, the joint venture said.
"The years 2016 and 2017 will be crucial if our film industry wants to blend into the international market," said Guo Xiaoxian, chairman of Beijing Times Films Company, Ltd.
In addition to investment and new technology, including 3D and high frame rates, a persistent pursuit of perfection is also crucial for China's movie industry to catch up, said Hollywood producer Don Hahn.
Success only comes after trial and failure, and film crews must harness their emotions to produce genuine and moving films, Hahn said.
Cheryl Boone Isaacs, president of the Academy of Motion Picture Arts and Sciences, said the core of filmmaking is exploring and expressing human nature.
Filmmakers should regard themselves as artists, break with traditional thinking and use different modes of storytelling, said Paul Haggis.
The most effective way to learn from Hollywood's experience is still through co-production, said Hou Guangming, president of the administrative council of the Beijing Film Academy.
In 2013, Chinese authorities doubled the number of foreign films for import and allowed foreign enterprises to invest in Chinese film production companies. China's film professionals have since learned a lot from U.S. producers and distributors, and the market posted average annual growth of 30 percent.
In 2015, 12 China-US co-productions received administrative approval, with seven of them already having completed filming. Among the most successful was Kung Fu Panda 3, which grossed nearly 1 billion yuan in the domestic market and did well in North America.
China and the U.S. film administration launched a talent exchange program in 2015, and so far China has sent two delegations to study at Paramount Pictures and Walt Disney Pictures.
Chinese film companies are also cooperating on other projects with Hollywood to build an entire industrial chain, covering film and TV education, derivatives development, movie theme parks and an international filmmaking base.
