China’s Lunar New Year Box Office Hits Record $1.3 Billion

China’s film industry has kicked off 2025 with a record-breaking Lunar New Year box office, raking in $1.3 billion in just one week. The surge in ticket sales highlights the success of China’s efforts to stimulate consumer spending amid economic challenges.

According to data from ticketing site Maoyan, box office revenue during the Jan. 28 – Feb. 4 holiday period soared to 9.48 billion yuan ($1.3 billion), marking an 18% increase from last year’s 8.02 billion yuan. The latest installments of major domestic franchises led the charge, reflecting the growing dominance of local productions over Hollywood imports.

Image Credit: Creation of the Gods II: Demon Force | IMDB

Topping the box office was Ne Zha 2, an animated fantasy adventure film, which amassed 4.84 billion yuan ($664 million) in ticket sales. It was followed by Detective Chinatown 1900, the fourth entry in the popular comedy-mystery series, which brought in 2.27 billion yuan. Rounding out the top three was Creation of the Gods II: Demon Force, a fantasy blockbuster that grossed 998 million yuan.

The massive success of these sequels underscores the strong preference for locally produced content, a trend that has been gaining momentum over the past few years. Despite an increased number of Hollywood releases in China last year, US films have struggled to regain their previous dominance. In 2024, US movie ticket sales in China fell by more than half compared to their peak, reflecting a shift in audience tastes.

Image Credit: Corbis

IMAX China also experienced a record-breaking holiday season, reporting $53 million in sales—57% higher than its previous best year in 2023. The company achieved its highest-ever market share at 4% and saw attendance jump to 5.5 million moviegoers, a 73% increase from 2021.

“Demand for experiences is stronger than ever,” said Daniel Manwaring, CEO of IMAX China. “Younger audiences, in particular, are seeking premium cinematic experiences, and they are willing to pay for them.”

China currently has over 800 IMAX theaters, the highest number in any market worldwide. With the rising demand for large-format and high-quality viewing experiences, IMAX is expected to maintain strong momentum in the coming months.

Image Credit: Bloomberg

The Chinese government has been actively working to revive consumer spending, and the film industry has benefited significantly from these efforts. In December, authorities introduced 600 million yuan in film industry subsidies, while local governments, banks, and online booking platforms offered various discounts and cinema vouchers between December and February.

These incentives have contributed to a sharp turnaround from last year when China’s annual box office revenue fell 23% to 42.5 billion yuan, marking one of the lowest levels in a decade (excluding the pandemic years). The rebound signals renewed confidence in the industry’s growth trajectory.

Image Credit: Posters of films ‘Detective Chinatown 1900’ and ‘Ne Zha 2’ at a cinema in Anhui Province | VCG. Getty Images

While China’s film industry is thriving, Hollywood studios face growing uncertainties. Increasing trade tensions between the US and China may complicate the distribution and promotion of American films in the Chinese market. Some highly anticipated US blockbusters slated for worldwide release in 2025, including Paramount Global’s latest Mission: Impossible installment and Disney’s Avatar and Zootopia sequels, could face hurdles in securing strong box office returns in China.

However, IMAX’s Manwaring remains optimistic about Hollywood’s prospects in China. “We’ve seen incredible openness in terms of policy on the mainland,” he noted. “A lot of Hollywood films are getting in, and we don’t see that changing. Regulators appear committed to growing the industry and allowing as many films as possible into the market.”

As China’s film industry continues to expand, its dominance in the global box office is becoming increasingly evident. With strong local franchises and government support fueling growth, 2025 is shaping up to be a landmark year for Chinese cinema.