Billsdue blog has translated some interesting news about the animation industry in a post titled 'Caijing On Foreign Investment In China's Entertainment Industry'. Excerpt:

Among the interesting tidbits mentioned is that Sequoia China has apparently closed up to a $10M investment into Polybona (保利博纳. Variety backgrounder), one of China's largest private film distribution companies.

In addition, the article mentions that Sequoia China investee Great Dreams Cartoons (宏梦卡通) is discussing a merger with Sunchime Cartoons (三辰卡通). In fact, according to the CEO of Great Dreams, Wang Hong (王宏), there may be a merger underway of the top three animation companies (one an animation channel) in Hunan Province--Great Dreams, Sinchime and Aniworld (金鹰卡通) to create an animation powerhouse.

Sequoia China is the Chinese investment vehicle of the famous Silicon valley VC firm that was an early investor in Google and Youtube.

Read the whole thing on Billsdue (proxy link for people in China), or see the original Chinese article is on Caijing's website.

UPDATE From a press release published on CNN.com:

Linktone Ltd. , a leading provider of wireless interactive entertainment products and services to consumers in China, announced today that the Company has formed a joint venture with Greatdreams Cartoon Industry to provide animated cartoon wireless value added services to 367 million teenagers in China.