A hit in the mar­ket

China Daily (Hong Kong) - - BUSINESS - By CAI XIAO caix­iao@chi­nadaily.com.cn

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.

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