SHENZHEN - Running a business based on horses is not for the faint of heart or bank account.

"Horse-keeping is a huge investment with high risk, especially when China's horse industry is still in its infancy," Shi Hesheng says.

He is manager of the equitation (horse riding) team of 70 horses plus human performers at Splendid China theme park in Shenzhen. He manages a similar show and cast at Happy Valley in Shanghai.

The shows are popular, but the operation is not as profitable as others think, Shi says. Salaries for his actors and horse trainers are increasing, and replacing horses can break the bank.

Shi, 57, just returned from a horse-buying trip to Hebei province and to Inner Mongolia and Xinjiang Uygur autonomous regions.

"Although we have a large number of horses in China, the options are still very limited," he says. "Only horses taller than 1.5 meters are acceptable for my shows, but the majority of domestic horses cannot meet the demand."

Why not buy foreign horses?

"Of course they are better choices - better looking, with purer descent and a chip under their skin to record their racing files," he says. "But they are too expensive. I cannot afford them."

Dutch Warmbloods, for example, are used mostly in show jumping and dressage events, but the current market price of each is 30,000 to 200,000 yuan. "Such a high price would definitely eat up all my profit."

Shi, who has worked with horses for 15 years, spent half a month before finding suitable horses in Ili, Xinjiang. They are priced at roughly 10,000 to 30,000 yuan each.

"I haven't made the decision yet," he says. "The price is still over budget."