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China Virus Prompts Filmmakers to Cancel Lunar New Year Premieres

China Virus Prompts Filmmakers to Cancel Lunar New Year Premieres

(Bloomberg) --

Movie makers canceled a slew of films set for the Lunar New Year holiday in China, while cinema chains suspended operations as a deadly coronavirus outbreak thwarted what is typically the biggest week of the year for theaters.

“Detective Chinatown 3,” the third installment in one of China’s most commercially successful comedies, will not open Friday, as planned, according to a post on the film’s Weibo social media sites. Producers of “Leap,” based on the true story of the Chinese women’s volleyball team, announced similar cancellations, as did the makers of “Jiang Ziya: Legend of Deification,” one of the most anticipated films to have been released over the seven-day holiday.

China Virus Prompts Filmmakers to Cancel Lunar New Year Premieres

The lineup of potential Lunar New Year blockbusters had set expectations high for box-office sales in a market that is projected to overtake the U.S. as the world’s largest this year. The potential hits were also set to increase the dominance of local-language films in China’s estimated $29 billion movie market, which U.S. filmmakers are counting on to backstop ticket sales for big-budget franchise pictures.

Huanxi Media Group Ltd., the company behind one of the expected holiday blockbusters “Lost in Russia,” said Friday the movie would not premiere as planned on the first day of the New Year season.

Chains including Dadi Cinema, Jinyi Cinemas and the local affiliate of CJ CGV Co. announced on their websites they were halting operations January 24 through January 27.

The cancellations follow announcements by Chinese health officials urging residents to avoid gathering in public places where the SARS-like virus could spread. The government has also halted travel from the city where the outbreak is believed to have originated. Wuhan, a city of 11 million, is essentially locked down as officials try to contain a virus that’s killed at least 25 and infected hundreds.

IMAX Corp. shares fell for a fourth day Thursday in New York, while the cinema operator announced it would postpone New Year holiday releases. The step was the “best course of action in an unfortunate situation,” the company said in a statement. Imax China Holding Inc., the local affiliate, fell as much as 2.2% in Hong Kong trading Friday.

Other China film-related shares fell Thursday, though mainland markets were closed Friday for the start of the New Year holiday.

Shares of Wanda Film Holding Co., a film exhibitor and producer of the “Detective Chinatown” series, fell 7% Thursday in Shenzhen, bringing their decline this week to 21%, the biggest four-day slide since 2018. Beijing Enlight Media Co., the company behind “Jiang Ziya,” slumped 5%, bringing the four-day drop to about 15%.

China Virus Prompts Filmmakers to Cancel Lunar New Year Premieres

Along with the restrictions on travel and public gatherings in Wuhan, residents in several nearby municipalities are limiting their activities. Hong Kong and Beijing are also canceling planned holiday activities, according to local officials and state media.

The number of confirmed cases in mainland China rose to 830 as of Jan. 23, including 177 cases in severe condition and the 25 deaths, the National Health Commission said in a statement.

--With assistance from Sarah Chen.

To contact the reporters on this story: Shirley Zhao in Hong Kong at xzhao306@bloomberg.net;April Ma in Beijing at ama112@bloomberg.net

To contact the editors responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net, Dave McCombs

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