Donnie Yen and former boxing champion Mike Tyson pose as if fighting at a promotional event for Ip Man 3 in Beijing.[Photo provided to China Daily]

Frauds in box office records have become familiar in China's film industry. Bribing cinemas to cooperate and mass-buying tickets to one's own films may bring about a hefty marketing bill, but it is often deemed a "worthy investment" if the move can attract more viewers to the theaters. Some of the distributors allow, or have no choice but to abide by the unspoken rules of the market. However, this is the first time for a film to be "caught redhanded" and governing institutions were alarmed enough to issue statements.

China's media watchdog State Administration of Radio, Film and Television and China Film Group, one of China's largest distributors, said that they have begun to look further into box office frauds after the "serious and abnormal fluctuations in the box office since March 4" to maintain order in the film market and for its sustainable development into the future, though the specific names of the films were not released.

"We will nullify box office returns as necessary and punish cinemas, distributors and film companies involved, depending on the seriousness of the offence," SARFT said in an official statement released on March 6.

Several e-ticketing institutions, including Maoyan and Baidu Nuomi, have all received notices from SARFT to investigate the abnormal fluctuations in the ticket sales of Ip Man 3. SARFT has also asked e-ticketing institutions to provide their contracts with the distributor of Ip Man 3 for further scrutiny.

Producers of Ip Man 3 have yet to respond to the allegations.

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