In 1974 Hammer Film collaborated with Shaw to produce The Legend of the Seven Golden Vampires with Peter Cushing and David Chiang. The vampires here were the western kind as opposed to the later hopping vampires. At about the same time the American film the Exorcist became a huge international hit. So HK decided to start producing horror films.
The HK horror films tended to be shocking, strange and very gory for the most part. One of the first was produced by Shaw Brothers called Black Magic. In it a black magician needs to feed upon human milk to stay alive. He satiates his needs in particularly gruesome ways. Many of the HK horror films that followed often took place in the seemingly mysterious South East Asia and revolved around horrible curses. Some of these over the next number of years were Black Magic II, Red Spell Spells Red, Holy Virgin vs the Evil Dead, Witch with the Flying Head and Seeding of a Ghost.
The above information was gathered from Mondo
Macabro by Peter Tombs