Overseas success of Chinese films bolsters confidence in Chinese assets

A feast of Chinese films that hit the big screen during the Spring Festival holiday have not only captivated domestic audiences, but are also making a significant splash overseas. This has not only energized the Chinese film market, but also provided robust support for the rise of Chinese assets.

The record-shattering animated blockbuster "Ne Zha 2" (Ne Zha: Demon Child Conquers the Sea) has been set for official releases in multiple overseas markets including Australia, New Zealand, South Africa and Japan, starting Wednesday. In North America, presale tickets are in high demand, with an occupancy rate exceeding 90 percent. The film had grossed over 9.7 billion yuan ($1.33 billion) as of Wednesday, breaking into the top 20 of all-time global box office rankings, according to data from industry tracker Maoyan Pro.

Meanwhile, "Creation of the Gods II: The Battle of West Qi" has been released in 16 countries and regions, dominating the box office charts in Australia and New Zealand for four consecutive days, and leading the non-English film box office in North America from January 31 to February 2. The tentpole "Detective Chinatown 1900" saw its premiere tickets in Madrid, Spain, sell out within just 10 minutes.

The overseas success of Chinese films has caught the attention of international investment banks. HSBC and Deutsche Bank have upgraded their ratings for innovative Chinese enterprises, contributing to the valuation recovery of the MSCI China Index, huanqiu.com reported. These institutions believe that the runaway success of "Ne Zha 2" has not only enhanced the international influence of Chinese culture, but also bolstered global investors' confidence in the Chinese market.

Market analysis suggests that the overseas box office success of Chinese films will elevate the global valuation of related A-share listed companies. Chinese film sector stocks surged at market opening on Thursday, with Beijing Enlight Media soaring over 10 percent, Bona Film Group climbing more than 7 percent, and companies like Hengdian Film and China Film Group Corporation also posting gains, according to Southern Finance, a Guangzhou-based media outlet.