As in Hollywood, the Shaw Brothers ran the studio on the star system and mass production. Throughout the 1960s, it had contracts with the largest roster of stars and directors in the East, including Lin Dai and Li Han Hsiang. These actors and directors spent most of their careers working within The Shaw Brothers studio.

Classics such as The Kingdom and the Beauty, Love Eternal and The Empress Dowager/Ruin of a Kingdom were directed by Li Han Hsiang, who directed over 40 films for The Shaw Brothers. Directors such as King Hu (Come Drink With Me/Drunken Hero, 1966) almost never worked outside the Shaw studio.

During the 60's the Shaw Brothers grew into the most powerful film studio in the Orient, and built a "cinema city" in Clear Water Bay, Hong Kong. Among it's most impressive amenities were ten production studios with permanent sets, including palaces, gardens, and complete streets. Also included were administrative offices, technical facilities, and dormitories for workers.

In 1970 Raymond Chow's Golden Harvest became the major rival to Shaw Brothers and began to take over the market. Many of the current Hong Kong directors, including John Woo, Jackie Chan and Tsui Hark all came out of the less bureaucracy-bound, more innovative studios.