Since physical currency was of no use in the afterlife, people would purchase sheets of paper, cut out a certain amount of "bills" from it, write denominations on them, and burn them at the grave. They placed the document in the grave and then honored it by paying a certain amount of cash. This contract cited "the dead person's name, titles, and date of death the exact dimensions of the plot, the price paid for the land.and signatures of witnesses" (Benn, 271). The song was pulled from the streaming service after users of Weibo pointed out that the lyrics were a veiled reference to the bloody 1989 incident, which saw the Chinese military violently disperse unarmed pro-democracy student protesters who were occupying the famous square, killing hundreds.The relatives of the deceased would choose a spot and then write up a legal contract purchasing that plot from the gods and spirits. In 2019, the theme song of A Chinese Ghost Story II, ไบบ้้, or translated as "A Human's Path" was pulled from Apple Music in China due to its association with the Tiananmen Square Massacre. Windy has escaped from her wedding and decides to leave with Ning. In the desert, as Yin and Ning are about to continue their journey, they see two women approach on horseback, which happen to be Windy and Moon. Ning runs down from his inn to the main street and tells Moon that he wishes Windy a long, happy marriage before leaving. The next day is the marriage of Windy to the Ma family.
Autumn, however, is not able to return to his body, and his soul floats away. Yin and Autumn are swallowed by the creature, and they separate their souls from their bodies in order to destroy it from the inside. The demon is forced to reveal its true form, a gigantic thousand-year-old centipede. Lacking spiritual magic, however, Hu is not able to overcome the demon and is destroyed. Recognizing that the monk is in reality a demon, Hu frees the captives and fights valiantly by himself to allow them time to recover. Now suspicious, Hu enters the palace only to find the hollow corpses of the entire royal court inside. The captives are brought back to the High Monk's palace. Ning and Windy escape to seek the help of Yin, while Lord Fu, Autumn and Moon are captured by the monk. He incapacitates the rebels with a spell, which Autumn recognizes as an evil chant. Before long, however, the Imperial High Monk arrives with his entourage. Maneuvering Hu into fighting the demon, the rebels are able to rescue the sisters' father. As the convoy enters, however, the demon returns as well. Having failed to catch the convoy earlier, the rebels return to the haunted villa, waiting to ambush the convoy there. Unbeknownst to Autumn, the convoy is the one carrying the sisters' father. Hu and Autumn battle to a stalemate, and then go their separate ways. He emerges at daybreak on a dirt road, causing an altercation with an imperial convoy led by Hu ( Waise Lee). Autumn manages to injure it, but it flees.
The next night, the two discover that the villa actually is haunted by a demon. They set off and leave Ning and Autumn at the villa. The sisters explain that their father, Lord Fu (Lau Siu-Ming), was framed for a crime and is now being transported to the place of his execution.
While Ning mistakes Windy for his love Siu Sin, whom she resembles, the rebels mistake Ning for the Elder Chu. After a short skirmish, the rebel sisters Windy ( Joey Wong) and Moon ( Michelle Reis) discover Elder Chu's pendant. But in the middle of the night, rebel soldiers attack the two visitors. When Ning stops for the night in an abandoned villa, Autumn catches up and the two sort out the misunderstanding. Ning obliviously steals the horse of Autumn ( Jacky Cheung), a Taoist sectarian. He gives Ning one of his books and a pendant, and sends Ning through the tunnel. On the day of Ning's execution, the scholar reveals that he has dug out an escape tunnel.
Sharing a cell with Elder Chu, a renowned scholar, Ning spends apparent months languishing in prison. Fleeing from cannibals, Ning winds up being imprisoned. Following the events of the first film, Ning ( Leslie Cheung) parts ways with the Taoist Yin ( Wu Ma) and returns to his home village, which has since fallen on desperate times.