From
www.monkeypeaches.com:
According to the Taiwanese media, filming of the sequel to Kung Fu Hustle will begin in Shanghai this September or October and will complete by the yearend. Almost everyone, including Stephen Chow himself, Lam Tse-Chung (Chow's sidekick), Yuen Qiu (the Landlady) and Yuen Wah (the Landlord), will reappear in the sequel. Even Chan Kwok-Kwan, whose character died in the first film, will return with a new character. However, Huang Shengyi, who played the female lead, is currently trying to leave Steven Chow's agency and her chance of returning to the sequel is quite small. The action will still be handled by Yuen Wo-Ping and there will be more action sequences in the sequel. The budget is about US$ 15 million and part of it comes from Sony Pictures.