40 years old Chinese movie which I watched when I was a kid [SOLVED]

Movie could have been from Taiwan, China or Hong Kong. It was in Cantonese with both Chinese and English subtitles when I saw it.

Let me describe the plot in as much detail as possible.

The movie started with a group of puppeteers standing in the back of a truck driving down the road. They were having fun performing and playing around, singing songs. A girl accidentally dropped her puppet as the truck drove away.

A little boy picked up the puppet. His younger sister told him that they should return it to the puppeteers. Boy said no and ran away, but the sister chased him. Eventually, he was able to elude his sister.

He took the puppet to the park, sat on a bench, and fell asleep.

So this was reality dream and reality blurred. The puppet woke up and started acting on its own. The boy was shocked and asked how he could do that, but the puppet said of course he could move because he was an actor.

What happened next became blurry... but the ending was something like a giant who looked just like the boy showed up and kidnapped the puppet and no one could do anything about it. The giant said the puppet was his and his alone... then the boy woke up.

The boy now realized the error of his way and took the puppet back to the puppeteers.

Show me the holes!