Wang Zhongjun(L1), chairman of the board of Huayi Bros, Wang Zhonglei (R1), CEO of Huayi Bros, and their counterparts from Diversion Pictures, Daniel Wu (R2) and Stephen Fung (L2), attended the press conference to announce their cooperation on Thursday, March 17, 2011. [Photo/CFP]

Veteran movie actors Stephen Fung and Daniel Wu have established their own company, Diversion Pictures, to have more control over their films.

The Beijing Times reported that Huayi Brothers, China's biggest entertainment group, will offer to finance Diversion Pictures under a five-year cooperation contract. The company also claims first-look rights over works produced.

This marks another attempt by Huayi Bros. to boost the Chinese film industry after rolling out a massive plan in February.

The new independent company Diversion Pictures will target a young audience and focus its interest on films featuring an artistic vision that appeals to modern-day young people.

Daniel Wu, the Chairman, and Stephen Fung, the CEO, once collaborated in "Bishonen" ("Mei Shao Nian Zhi Lian") in 1998 and have since become good friends.

As well as leading the new company, the two stars say they will still act, write and direct.

Their first production "Tai-Chi" starring kung-fu star Jet Li will start shooting in June.