Flowers Of Shanghai (1998) ***

Directed by Hou Hsia-Hsien. Shanghai's red-light district in the late 19th century. The action is set indoors, in splendidly decorated rooms, with candles and oil lamps bathing everything in warm hues of orange, red and yellow. The director is Hou Hsiao-Hsien, the Taiwanese master responsible for the brilliant "Good Men Good Women" (1995) and the visually impressive "Goodbye South Goodbye" (1996). Now, with "Flowers Of Shanghai", he opts for simplicity, telling a series of unsentimental stories about glamorous hookers and their rich clients. There are no sexual activities of any kind. In fact, the entire film consists of business-like conversations about inflated prices, exclusivity contracts, marriage promises and expensive gifts. Like an Oriental Frederic Wiseman, Hou uncovers the inner-workings of an institution, and the results are fascinating.