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Production has begun on “Monster Hunt 2,” a sequel to the hybrid live action and animation fantasy film that became the highest grossing film of all time in China in summer 2015.

The film is again being directed by Raman Hui, who made the “Monster Hunt” as his Chinese feature debut, after an extensive career in Hollywood, where he was one of the key creators of the “Shrek” franchise.

Also returning are young stars Bai Baihe and Jing Boran. Further cast is to be announced, including a major name star.

Being produced by Hong Kong’s Edko Films, the new movie is shooting in Beijing and will be released in 2018.

The first film grossed RMB 2.43 billion — $361 million at current exchange rates — at the Chinese box office and sold widely for Edko. Production of the new film comes shortly before the start of the American Film Market in Los Angeles next month.