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Siu-sin soon falls for him too, but Taoist priest Yin Chik-ha (Wu Ma) is determined to kill her and the rest of the ghosts and spirits in the temple. He meets a beautiful young woman, Nip Siu-sin (Joey Wong) and falls head over heels, unaware that she’s a ghost who lures men to their doom at the hands of a tree demon that has her enslaved and takes human form as The Old Dame (Lau Siu-ming).
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Drenched to the skin by a sudden downpour, his debt book now unreadable due to the ink having run in the rain and without money or shelter, he finds himself in a small rural town where he is forced to spend the night in a nearby deserted temple, rumoured by the superstitious locals to be haunted. Hapless debt collector Ning Choi-san (Leslie Cheung) is having a particularly bad day. Although Ching is credited as the sole director, Hark said that he directed some sequences himself and there’s certainly more than a trace of the style that western audiences were slowly getting used to at the time, as well as tips of the hat to western horror films like The Evil Dead (1981).
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The film, loosely based on Pu Songling’s short story Nie Xiaoqian from the Strange Stories from a Chinese Studio collection, was also inspired by Hark’s childhood memories of seeing Han Hsiang Li’s earlier adaptation Ching nu yu hun/The Enchanting Shadow (1960), of which A Chinese Ghost Story is a high-octane remake. Having defined what the modern wuxia/horror hybrid was going to looked like with Shu Shan: Xin Shu shan jian ke/Zu: Warriors from the Magic Mountain (1983), Hark Tsui teamed up with Ching Siu-Tung, director of the equally ground-breaking Xian si jue/Duel to the Death (1983) for A Chinese Ghost Story, an effects packed romantic wuxia that gave rise to a series of sequels and remakes.