It’s impossible to talk about Chinese-language cinema without mentioning Hong Kong — a truth underscored at this year’s 27th Shanghai International Film Festival (SIFF).

This year’s program dives deep into the city’s storied cinematic past, treating audiences to classics like Jackie Chan’s complete Police Story series. Alongside the retrospective is a forward-looking focus: a Hong Kong New Power Projects Showcase that has presented five productions looking for mainland Chinese partners. It’s all helped spark a conversation about how a city of just 7.5 million people has produced such a rich legacy of influential films — and what the next wave of Hong Kong cinema might look like.

But what’s not being lost on anyone is how Hong Kong cinema is struggling, with its box office down to a 13-year low as of the latest report, with production numbers also diving. Many of the city’s filmmakers have turned their focus on to the mainland Chinese market. The China Film Administration has recently opened new doors for cross-border collaboration — but like many film hubs around the world, the city once dubbed the “Hollywood of the East” is facing a period of uncertainty.

John Chong has been among the most successful filmmakers Hong Kong has produced, helping start the Media Asia production house in 1994, and backing such massive hits as the Infernal Affairs trilogy (2002-03) — which later became the source material for Martin Scorsese’s Oscar-winner The Departed (2006) — and the recent smash Twilight of the Warriors: Walled In, director Soi Cheang’s grubby, nostalgia-soaked take on life in what was known as the Kowloon Walled City slums, which existed right up to government enforced demolition in 1994.

After more than three decades in the business, Chong remains optimistic. In September, he’ll take on the role of chief mentor at the International Film Camp, an initiative from the Asian Film Awards Academy in Macau, aimed at nurturing the next generation of Asian filmmakers.

As attention once again turns to his hometown, The Hollywood Reporter sat down with Chong to discuss the state of the industry, what comes next — and how his own journey into cinema began.

There’s attention here at SIFF about the state of Hong Kong cinema. What’s your take on the situation?

I think it’s a world problem and I think we all know it’s because consumers have too many options. Three decades ago, if you went on a date, the first option was to go to the cinema. Now we all have a lot to do, especially with AI, video games and streaming platforms. That’s why our shared problem is the shrinking of revenues from theaters. It’s no secret. And there’s just not enough popular commercial films. It’s a chicken-and-egg issue. People don’t want to see poor films and that’s why theaters are not running well. What we have to do is educate filmmakers, the young filmmakers. You make a film for people, for the audience, not for yourself.

What about the operation of the cinemas themselves?

In Hong Kong, rent is the issue. It’s too high and maybe we can also change the corporate structure. Shopping malls — they’re doing this now, I think. Cinemas can bring people there so there is opportunity for more synergy. There are also initiatives such as the “dining cinema’” experience, where quality meals can be enjoyed while you watch. We need to explore more options for cinema-goers, more things to get them to come to cinema and have an expanded experience.

Are you witnessing any positives coming out of Hong Kong?

I think our strength, compared to 10 years ago, is that we have a lot of new talents. But the problem is they seem to be strong in a few genres, and we need a bigger range of genres. We need some comedy, fantasy, adventure, and others as well. But at the moment they are always focusing on exploring their own feelings. These films might be good, but we need more.

How different is it now compared to when you started work on the Infernal Affairs trilogy?

At that time, the market was just as down as it is now, and a lot of filmmakers had even changed their profession, to be a taxi driver or other things. It was disappointing. But (Media Asia co-founder) Peter Lam found the resources to make some bigger films. We decided they just couldn’t be action, they had to involve some psychology, characters undergoing a mental fight. When we read Infernal Affairs we saw it as a high-concept story. I said to director [Andrew Lau], high-concept means low risk. Then we talked about the cast [including Andy Lau, Tony Leung and Anthony Wong] and people said to us they all were 40-something. At that time, people thought 40-something guys are too old. They didn’t know. Those guys are almost 70 now, they’re still doing it. They’re still doing great stuff.

So great script, great cast — but still a risk?

Andrew said, if this is not successful, I have to change my profession. Everyone thought we just had one chance to make it work. If it was a flop, we were all in trouble. That’s why we worked together very humbly and I remember we had over 10 cuts, editing and changing a lot of things like the dialogue. After that, Peter asked me, “Have you finished the cut? The final cut?” I said, “Yes. It’s very good.” He said, “You are very conservative. Is it brilliant?” I said, “Yes.” The first time I saw it, it was brilliant, and then the rest is history. When you make a film, everyone has to do their best, and our whole crew had the same attitude.

Two decades later — with the industry struggling again — you produced Twilight of the Warriors: Walled In. What was the secret this time?

First of all, the engaging story, the outstanding characters. It’s actually not a very special crime film but it’s about brotherhood, betrayal … and survival. That’s the first layer. And secondly, it’s the atmosphere. We captured the atmosphere of the walled city so well some people actually thought that it still existed. People have special feelings for this place. I actually lived there for a few years when I was very young. For a child, it was sometimes very painful because we were not allowed to go to some of the dark places. We captured that, and we did something very special.

You’re turning your attention soon to the International Film Camp, and helping some young Asian filmmakers get their start in the industry. How did you break in?

I saw Taxi Driver by Martin Scorsese and I thought it must be pretty cool to be a filmmaker. When I graduated, I wanted to join the film industry, but I didn’t know what to do. I had a minor in Chinese literature, so I thought I could start as a scriptwriter. Then I met the director Ringo Lam, and I had so many questions for him. We met, and he gave me a chance. I started writing and I also did subtitles for films such as The Shining and Top Gun.

What was your first credit?

I talked to Ringo and he told me he was writing a song for Prison on Fire [1987]. I don’t know music but I thought if I take this job, I will be very busy for two weeks at least but if I reject it, I lose my opportunity, and I have no pay. I spent almost three weeks, because I don’t know music, to come up with a song — Full of Hope. He loved it and Ringo used it. That was my first credit.

What are your plans for your role as chief mentor at the International Film Camp?

When I was young, I hoped for the opportunity to ask questions from the veterans. I think it’s very important because they’re just beginning their careers in filmmaking. What I will tell them is that one thing that’s really important is persistence. I will tell them that if they enjoy making films or enjoy being a filmmaker, don’t think too much and just do it. There’s a lot of examples of people who work for a few decades and then they suddenly become a well-known director or a scriptwriter. So you never know. Just persist.