China's film regulator is to continue the industry reform and allow greater commercialization, a senior official has told the ongoing 15th Beijing Student Film Festival.

Zhang Hongsen, deputy director of film bureau of China's State Administration of Radio, Film and Television (SARFT), said the policy of commercialization would allow the promotion and sale of films as commodities on the market, the breaking up of film-making monopolies and overseas fund raising for film-making.

The policy would lead to more market-oriented and commercial films in China's cinemas, he said.

"In the 30 years since China adopted the reform and opening up policy, Chinese film workers have liberated their minds and produced many films acclaimed by audiences," he said.

"In particular, after China adopted the policy to commercialize its film industry in 2003, the box office takings of Chinese films have risen by 20 percent annually," he said.

In 2007, China produced 402 films with a box office of 3.3 billion yuan (434 million U.S. dollars), statistics from SARFT showed.

Despite the achievement, Zhang admitted commercialization of films was just beginning, and many aspects of the industry were still under the planned economy.

"Among the 402 films, only a few had a clear plan of investment, production and marketing," he said. "We lagged far behind the United States, Japan, the Republic of Korea and India.

"We will show more respect for the art of film and the film market as well as the demand and choices of the audience and film-makers," he said.

He said the policy to commercialize films would remain unchanged and called on the experts present at the forum to make more suggestions on the commercialization of Chinese films.