And who will go see them? In 1992, Hong Kong films earned $160 million at the local box office; last year that take was nearly halved, to $85 million. And though Hong Kong remains the rare free-market region whose homemade films outgrow the Hollywood invaders, the locals' share has plummeted in four years from 80% to 54%. That has led to a slashing of the typical movie budget, from nearly $3 million to about $1.5 million. In such a stringent climate, producers naturally drool when they look to the mainland. But Beijing has said it would not relax its quota system, which allows release of only 10 foreign films a year, including Hollywood big movies.
Hong Kong producers see the mainland not only as a revenue wellspring but also as a great place to make cheaper movies. But if you shoot on their real estate, you'll have to play by their rules. …
