A hit in the market
With domestic action blockbuster Wolf Warrior II now China’s top grossing film, its distributor — Beijing Jingxi Culture and Tourism Co Ltd — is also achieving a strong performance in the A-share market, stimulating interest in local media companies.
The film grossed 3.4 billion yuan ($507.2 million) by 10:15 pm on Aug 7, breaking the record previously held by Steven Chow’s fantasy comedy The Mermaid with 3.39 billion yuan ticket sales in 2016, according to data released by Maoyan, a major Chinese film database.
Shares in Beijing Jingxi Culture and Tourism Co Ltd closed at 19.07 yuan on Tuesday, increasing 35 percent comparing with the price on July 27, the day Wolf Warrior II screened. With a total of 726 million issued shares, its market value increased during the period by a total of 3.59 billion yuan.
Its closing share price on Monday hit 21.14 yuan, following a statement that directors and senior management teams plan to reduce their share holdings.
A stock index tracking A-share listed culture and media companies rose 0.81 percent on Tuesday, while the Shanghai Composite Index was up by 0.07 percent.
Another A-share listed firm, Beijing Jetsen Technology Co Ltd, whose subsidiaries were producers of Wolf Warrior II, saw its price close at 10.24 yuan on Tuesday, up from 9.4 yuan on July 27.
“The business success of the film and outstanding capital market performance of Beijing Jingxi Culture and Tourism Co Ltd and Beijing Jetsen Technology Co Ltd will definitely shore up the confidence of Chinese listed culture and media companies,” said Dong Minna, an analyst with Beijing-based consultancy Analysis.
“The good release timing, military theme and Hollywood-style production all contribute to the success of Wolf Warrior II,” Dong said.
Released at the golden time of the summer vacation, Wolf Warrior II tells the story of a former Chinese special serviceman’s adventurous journey to rescue compatriots and local friends in a war-torn region of Africa occupied by insurgents and mercenaries.
According to a report by Guoyuan Securities, just like the success achieved by the blockbusters in 2015, Wolf Warriors II will bring good investment return for its listed publishers and distributors benefiting from the direct influence of the box office revenue.
Zhuang Qiange contributed to the story.