Hong Kong is a major film-producing centre. During the year, it produced 150 films compared with 95 in 1999. Action films, romance and comedies are the main genres.

Going to the cinema is a popular leisure activity, with patrons able to choose from a good variety of foreign and local films. In 2000, there were 63 cinemas (with 178 screens) compared with 72 cinemas (with 189 screens) in 1999. The biggest box-office hits of the year included Mission Impossible 2 ($36.1 million), Toy Story 2 ($35.7 million) and Needing You ($35.2 million).

Hong Kong has a three-tier film classification system: Category I (suitable for all ages); Category II, which is subdivided into Category IIA (not suitable for children) and Category IIB (not suitable for young persons and children); and Category III (for persons aged 18 and above only). The objective is to allow adults wide access to films while protecting persons under the age of 18 from exposure to potentially harmful material.

Category IIA and IIB classifications are advisory (no statutory age restriction is imposed) and are intended to give more information to movie-goers, parents in particular, to help them select films for themselves or their children. Age restriction is mandatory for Category III films.

During the year, 1 068 films were submitted for classification, compared with 1 408 films in 1999. Of these, 196 were classified Category I (one with excisions), 223 Category IIA (one with excisions), 420 Category IIB (41 with excisions), and 229 Category III (104 with excisions). Film trailers, instructional films and cultural films intended for public exhibition also require censorship but do not need to be classified into any category. During the year, 1 526 such items were approved for exhibition.

Film classification standards are kept in line with society's standards by regular surveys of community views and consultation with a statutory panel of advisers, comprising about 300 members drawn from a wide cross-section of the populace. A public opinion survey on the film classification system conducted in 2000 showed that the great majority of the public accepted the present system and the prevailing classification standards. Decisions on film classifications may be reviewed by the Board of Review (Film Censorship), a statutory body established under the Film Censorship Ordinance. The board comprises nine non-official members appointed by the Chief Executive, and the Secretary for Information Technology and Broadcasting as an ex officio member. There were no reviews of the censor's decisions in 2000.

The Government is committed to providing a favourable environment conducive to the healthy and long-term development of the film industry in Hong Kong. The Film Services Advisory Committee was established in May 1998 to provide a conduit for dialogue between the film industry and the Government and to advise on the work of the Film Services Office under the Television and Entertainment Licensing Authority which facilitates film production in Hong Kong and promotes Hong Kong films locally and abroad. The committee is appointed by the Chief Executive and comprises the Secretary for Information Technology and Broadcasting who is the chairman, two public officers and nine members who are non-officials.

Since its establishment in April 1998, the Film Services Office has obtained the agreement of over 180 government departments and public organisations to let their premises for location filming and has published reference materials in this regard for the industry. To facilitate film production in Hong Kong, the Film Services Office also provides one-stop service to the film industry on location shooting requests of a more complicated nature. During the year, it dealt with 142 such requests, with a 98 per cent success rate. The Film Services Office also facilitated the organisation of a number of tailor-made training courses for the film industry during the year.

To promote Hong Kong films, the Film Services Office facilitated the organisation of the Hong Kong Film Festivals in Shijiazhuang, Hebei Province, and in Washington DC in the United States, in July and August respectively. The Film Services Office also promoted Hong Kong as a choice for location filming at the international trade show 'Locations 2000' held in Los Angeles in February. The Hong Kong booth won the 'Most Informative Booth' award in the show.

The Entertainment Special Effects Ordinance was enacted in June to establish a new regulatory system governing the use of dangerous goods in the production of special effects in film and television production and theatrical performance. Its subsidiary legislation was introduced into the Legislative Council in December. The new regulatory system, tailor-made to meet the operational needs of the industry, will come into effect in March 2001.

The $100 million Film Development Fund, which was established in 1999, provides financial support to a wide variety of projects that can enhance the professional and technological capabilities of the film industry so as to strengthen its competitiveness. By the end of the year, a total of $23.5 million had been approved for 15 projects to promote the development of the local film industry. They included training courses, seminars, a consultancy study, an opinion survey, an awards presentation ceremony for Hong Kong films as well as participation in overseas film festivals.

To encourage infrastructural investment in film production and to sustain Hong Kong's growth as a major film production centre, a site in Tseung Kwan O designated for film production facilities was put out for tender in March and the tender was awarded in August. This followed the award of another site designated for film production use in August 1998.