Hollywood producer knows Hong Kong

Morgan dismissed suggestions that the free-trade pact with China hindered moviemakers by placing too many restraints on content.

"I don't buy that censorship theory. They don't want to take risks, no one wants to be the first mover," he said.

"Hong Kong needs to re-define its market, understand who their markets are," he said.

Morgan and Chan have also bought the film rights to Waiting, winner of America's 1999 National Book Award by acclaimed novelist Ha Jin (哈金). It tells the story of a Chinese prisoner during the Korean War.

"It's time for Hong Kong to reinvent itself," says Morgan. "There are still some serious filmmakers around. There is still a vibrancy here."