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Lianhua was formally registered in March 1930 in Hong Kong by [[Luo Mingyou]] (Law Ming-yau) and his partner, director [[Lai Man-Wai|Li Minwei]] (Lai Man-Wai). In order to resist the invasion of American films that dominated the box office in Shanghai and other cities, Luo realized he would have to produce films that were equally attractive artistically and equally rigorous in the business of production and distribution. The Company put advertisements in movie trade journals that proclaimed it was a modern company that aimed to create a Chinese Hollywood. Luo's plan was to build studios in Beijing, Shanghai and Hong Kong, to open a school to give up to date training for both technicians and actors, and to integrate the management of all these elements into a vertical organization on the Hollywood model.<ref name="Kerlan " >Anne Kerlan-Stephans, "The Making of Modern Icons: Three Actresses of the Lianhua Film Company," ''European Journal of East Asian Studies'' 6.1 (2007), p. 49</ref>

Lianhua was formally registered in March 1930 in Hong Kong by [[Luo Mingyou]] (Law Ming-yau) and his partner, director [[Lai Man-Wai|Li Minwei]] (Lai Man-Wai). In order to resist the invasion of American films that dominated the box office in Shanghai and other cities, Luo realized he would have to produce films that were equally attractive artistically and equally rigorous in the business of production and distribution. The Company put advertisements in movie trade journals that proclaimed it was a modern company that aimed to create a Chinese Hollywood. Luo's plan was to build studios in Beijing, Shanghai and Hong Kong, to open a school to give up to date training for both technicians and actors, and to integrate the management of all these elements into a vertical organization on the Hollywood model.<ref name="Kerlan " >Anne Kerlan-Stephans, "The Making of Modern Icons: Three Actresses of the Lianhua Film Company," ''European Journal of East Asian Studies'' 6.1 (2007), p. 49</ref>

1931, the entire enterprise transferred operations to the bustling city of Shanghai. That same year the [[Bright Moonlight Song and Dance Troupe]], founded by [[Li Jinhui]], would integrate with the film company.<ref name="Aigo2">Aigomusic. "[http://cn.aigomusic.com/newspage/21577.ftl Aigomusic] {{webarchive|url=https://web.archive.org/web/20070106070144/http://cn.aigomusic.com/newspage/21577.ftl |date=2007-01-06 }}." ''Li Jinhui.'' Retrieved on 2007-04-30.</ref> It is the first time a [[C-pop|Chinese popular music]] group of any sort becomes part of the movie industry. The company would later prove to be instrumental in the rise of the first generation of [[shidaiqu]] music. Among the company's leading stars were the actresses [[Wang Renmei]], [[Li Lili]], and [[Chen Yen-yen]], who appeared in many box office successes.<ref name="Kerlan " />

In 1931, the entire enterprise transferred operations to the bustling city of Shanghai. That same year the [[Bright Moonlight Song and Dance Troupe]], founded by [[Li Jinhui]], would integrate with the film company.<ref name="Aigo2">Aigomusic. "[http://cn.aigomusic.com/newspage/21577.ftl Aigomusic] {{webarchive|url=https://web.archive.org/web/20070106070144/http://cn.aigomusic.com/newspage/21577.ftl |date=2007-01-06 }}." ''Li Jinhui.'' Retrieved on 2007-04-30.</ref> It is the first time a [[C-pop|Chinese popular music]] group of any sort becomes part of the movie industry. The company would later prove to be instrumental in the rise of the first generation of [[shidaiqu]] music. Among the company's leading stars were the actresses [[Wang Renmei]], [[Li Lili]], and [[Chen Yen-yen]], who appeared in many box office successes.<ref name="Kerlan " />

The studio itself consisted of four branches studios: [[China Sun Motion Picture Company|China Sun]] (which was also founded by Li Minwei), [[Dazhonghua Baihe]], [[Shanghai Yingxi]], and [[Xianggong Yingye]]; all four had been independent studios during the 1920s before being co-opted by Luo in the early 1930s.

The studio itself consisted of four branches studios: [[China Sun Motion Picture Company|China Sun]] (which was also founded by Li Minwei), [[Dazhonghua Baihe]], [[Shanghai Yingxi]], and [[Xianggong Yingye]]; all four had been independent studios during the 1920s before being co-opted by Luo in the early 1930s.