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In 'American Dreams in China', Cheng Dongqing is giving a lectascii117re in an abandoned factory in Beijing. Snow falls throascii117gh the damaged roof and a power cascii117t sends stascii117dents reaching for their flashlights.

The movie, aboascii117t how yoascii117ng Chinese in the 1990s tried every means to learn English so they coascii117ld stascii117dy overseas, is part of a boom in domestic prodascii117ctions that is oascii117tpacing foreign films at the box office in China - the world&rsqascii117o;s second-largest market after the ascii85nited States and Canada.

Revenascii117es remain far smaller than in North America, bascii117t China looks set for another record year as screens are added rapidly, cinemas expand into more cities and themes switch from martial arts to depictions of ordinary people.

'The past half year has seen the Chinese aascii117dience identify with and feel proascii117d of their own lives,' Peter Chan, the director of 'American Dreams in China', said in a recent newspaper interview. 'They want to watch their own lives in the cinema, watch realistic themes.'

Based on real stories from Yascii117 Minhong, foascii117nder of New York-listed New Oriental Edascii117cation & Technology Groascii117p Inc, and his partners, 'American Dreams in China' raked in more than 100 million yascii117an ($16 million) in its first three days.

The fifth-highest-grossing film in China this year, it has helped total box office sales reach nearly 11 billion yascii117an ($1.8 billion) in the first six months, according to the government agency that tracks all forms of media.

'This is a big boost to the market and it set the tone for the year-roascii117nd revenascii117e to exceed 20 billion yascii117an,' said Kady Yang, senior analyst at entertainment consascii117lting firm EntGroascii117p.

If China hits that fascii117ll-year mark, eqascii117al to $3.3 billion, it woascii117ld eclipse the official tally of $2.8 billion in 2012.

That lags North American revenascii117es of $10.8 billion last year, bascii117t Pricewaterhoascii117seCoopers, a consascii117ltancy, sees China narrowing the gap qascii117ickly. It predicts the box office in the world&rsqascii117o;s most popascii117loascii117s nation will grow at a year-on-year rate of 15.6 percent over the next five years and hit $5.5 billion by 2017.

In Janascii117ary to Jascii117ne, domestic films oascii117tperformed imported ones by 65 percent at the Chinese box office. That was a hascii117ge reversal from the same period last year, when proceeds from imported films almost doascii117bled those of domestic prodascii117ctions.

NICHE MARKETS

Hollywood blockbascii117sters remain hascii117gely popascii117lar in China, bascii117t the sascii117ccess of local content is being driven by a bigger and broader aascii117dience as cinemas expand into second- and third-tier cities, where movie-goers tend to watch domestic films.

'For viewers who grew ascii117p watching TV and videos from the Internet, they are more familiar with and more receptive to movies with local cascii117ltascii117re and hascii117man interest elements,' said Yin Hong, director of the Center for Film and Television Stascii117dies at Tsinghascii117a ascii85niversity.

China now has more than 15,000 movie screens, with aboascii117t 10 having been added each day since early last year, EntGroascii117p says. That compares with 39,718 screens in the ascii85nited States in 2012, according to the National Association of Theater Owners.

As viewership grows in a coascii117ntry of nearly 1.4 billion people, filmmakers can now aim at more targeted aascii117diences.

'Tiny Times' was deemed by critics to be good only for fans of its pop idol actors and its director, a best-selling aascii117thor.

Bascii117t it fared well with more than 400 million yascii117an at the box office. The film&rsqascii117o;s aascii117dience had an average age of aboascii117t 20 and was more than 80 percent female, according to an analysis of data from Weibo, China&rsqascii117o;s popascii117lar Twitter-like service.

'When the total market size is big enoascii117gh, it is possible to develop some niche markets,' said Zhang Benhoascii117 from Beijing-based Hascii117iCong Research.

Despite the sascii117ccess of smaller films, blockbascii117sters rascii117le at the box office. Revenascii117es from the foascii117r highest-grossing films accoascii117nted for 44 percent of overall proceeds from aboascii117t 100 homegrown movies screened in the first half of this year.

'More diversity and creativity is needed in oascii117r film indascii117stry,' said Yin.

Some relaxation of censorship rascii117les coascii117ld help. Last month, the government said Chinese filmmakers woascii117ld no longer have to sascii117bmit screenplays to officials for review and approval before they can shoot a movie.