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We were unsure about this when we posted about it last week and it still seems no one knows who is doing what and when. MonkeyPeaches reports the following...

According to Chinese media, an assistance to Hsu Li-Kong, one of the producers of the original film, denied the rumor that Ang Lee would start making the prequel. An assistance to Ang Lee said the financier of the prequel had quit and Ang Lee had already abandoned the prequel. But according to a representative from Zoom Hunt International Productions Co., Ltd., a Taiwan-based studio co-produced the original film, screenwriter Wang Hui-Ling still works on the script of the prequel and there is no plan of making it this year.

So that leaves us with the cow allowed to stand next to the house, but only on Sundays and Tuesdays, and only after having completed its advance calculus homework... and... erm. More confused than ever.