As of Sunday afternoon, Monster Hunt had earned 1.317 billion yuan ($212 million) since it opened on July 16, Xinhua said.
The previous record was held by 2012 road trip comedy Lost in Thailand which earned about 1.27 billion yuan.
Fantasy comedy Monster Hunt, a blend of live-action and animation, tells the story of a radish-like baby monster called Huba.
The movie is set in a fantasy world resembling ancient China, where monsters and humans co-exist uneasily in two separate lands.
When revolutionaries in the monsters’ world attempt to overthrow their royalty, the monster queen flees to the land of humans and impregnates a hapless human man, Tianyin, with Huba.
He ends up being pursued by both monsters and monster-hating humans keen on capturing the newborn Huba.
Monster Hunt was directed by Raman Hui, who co-directed 2007’s Shrek the Third.
The Hollywood Reporter said that, outside China, Monster Hunt faces stiff competition from the likes of Minions and Inside Out.
The highest grossing movie ever in China is Furious 7, which earned about 2 billion yuan after it opened in April.
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