[Photo/China Daily]

Echoing Xu, Hung says Hong Kong cinemas saw a much earlier slowdown for martial arts movies than the Chinese mainland, which he adds has much more resources and talent.

"And the rapidly booming market provides a huge demand for quality content," Hung says.

With regard to the frequently discussed concerns about Hollywood rivals, Hung says local filmmakers enjoy their cultural advantages in appealing to local audiences.

China has developed its unique narrative and value systems from Eastern philosophies, literature and history, which are difficult for Western filmmakers to master, Xu says.

"When Chinese filmmakers tell stories for locals, they have a lot at stake," he says.