The Ling virtual reality display. Ling VR launched its crowd funding on Taobao.com, backed by Chinese e-commerce giant Alibaba, in 2014 and raised more than 2.7 million yuan, setting the record for China's VR products' crowd funding.[Photo/smarthey.com]

According to industry consultancy iResearch Consulting Group, China's VR market revenues are expected to top 5.6 billion yuan this year, up from 1.5 billion yuan in 2015, and reach 55 billion yuan by 2020.

She Shuanglin, a researcher at Analysys International, said that by buying film and game companies and cooperating with music companies, Baofeng will be able to produce a highly competitive range of VR content, including games and videos, as well as allowing its users to view live VR concerts in the future.

"Baofeng is making a stand across the whole industrial chain, including content production, software and other upstream fields, and downstream such as offline stores, sales channels," said She.

China's VR sector is becoming increasingly competitive.