Evergrande Music is chairman

The company will recruit musicians and producers with whom they've long cooperated, Wu says.

Evergrande Music's chairman Wu Xuedan says the real estate company's investment "sustains the music industry's future".

The label isn't the company's first non-real estate venture. In 2010, it bought the Guangzhou Football Team for 100 million yuan and renamed it the Guangzhou Evergrande Football Club. The soccer team is the current Chinese Super League champion.

The real estate company has 28 branches nationwide that will back up the music tours. Wu says the company's good relationship with foreign investors will help it expand overseas.

Song and Gao say they hope to diversify the music industry, which is currently lopsided toward hip-hop.

"We don't lack good music but need clever promotion plans and creative presentations," Song says.

Song and Gao have been friends since 1994, when Gao released his first collection, Collegiate Ballads 1, which was the top-selling album of the year and won almost all of that year's pop prizes. Song's record company has since released all of Gao's music.