Celestial match made in heaven.(Hong Kong Entertainment Expo)(movie co-productions on the rise in Hong Kong)

Co-production is the way to go," says Celestial Pictures chief exec William Pfeiffer.

Out of the 64 Hong Kong pics produced in 2004, about half were co-productions, according to the territory's Motion Picture Industry Assn. "We expect that percentage to rise this year," says MPIA chief exec Woody Tsung.

The partner of choice is mainland China. The Closer Economic Partnership Arrangement between Hong Kong and the mainland has made it easier to co-produce films with China and distribute pics there.

On musical "Perhaps Love," Celestial hooked up with Applause Pictures and U.S. outfit Ruddy Morgan. China's Stellar Media & Art, a joint venture between …