The Nightingale (left) and Where is My Home (right).

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Another ethnic film to find acclaim by exploring such narratives is The Nightingale, which is vying for a best foreign-language film Oscar next year.

About 70 percent of the Sino-French production is set in picturesque areas of the Guangxi Zhuang autonomous region. The movie uses local languages in dialogues, and portrays the Dong ethnicity's lives and customs.

Niu calls The Nightingale a "success story" to inspire ethnic moviemakers.

"Most ethnic films are low-budget made with an average cost of 4 million yuan ($57,000)," he says.

"Small budgets limit image quality and special effects. International attention, especially from top directors, can bring capital."

Niu recalls a recent meeting with Yojiro Takita, the Japanese director of the 2009 foreign-language Oscar winner Departures.

"Takita is very interested in China's ethnic groups, which remain little-known to the world," he says.

The Treasure of Genghis Khan is a case in which foreign interest has coaxed investment. The Sino-US production announced an $80 million budget in September 2013.

The story about the Mongol empire's founder was shot in spring in the grasslands surrounding Hohhot, the Inner Mongolia autonomous region's capital city.

The 3-D epic Loulan about the mysterious disappearance of the ancient city of Loulan is backed by a Singaporean investment of $39.3 million.

The tourism industry can also provide investment for ethnic films, insiders say.

Niu, who recently assumed the post of production director for Mosuo Sisters, says a travel group recently invested in the romance movie to promote the culture of the Mosuo branch of the Naxi ethnic group and the stunning natural sceneries among which they live.