This article reveals the correlation between the artistic conception in action scenes and the setting of closed spaces in King Hu's Kung-fu/Swordplay films. It examines the "inns" as the main stages of narrative and actions in four of his movies, in the consideration of three aspects: narrative, space and editing. Firstly, it analyzes the structures and the functions of traditional Chinese inns and the narrative devices that they contribute to the construction of storylines and the representation of martial arts crafts. It relates also the dominant influences of the aesthetics of Beijing Opera on King Hu´s narrative craft, directing skills and his setting design. Secondarily, it deals with the intense and escalating atmosphere in the multi-phases of actions scenes, which relies on the design of multileveled space inside and outside of the inns and the master control of the beats of actions. It also shows King Hu's unique understanding of kinesthetic artistry:instead of showca- sing physical combat, he lets the actors demonstrate the sophisticated craft of acrobatics and presents, in a subtle way, the antagonistic ambiance alongside outstanding staging skills. Thirdly, King Hu uses not only the combination of sequence shots and construc- tive editing to incarnate the complex action scenes, but also elliptical cutting to eliminate some phases of actions in order to manifest the miraculous movements of the protagonists. Thus, he explores the "non-ideological" use of cinematic techniques by separating them from the ideological symbols defined by the theorists such as Eiseinstein and Bazin, and thus creates an artistic conception with the typical Chinese style. Finally, the article reveals the profound influences of his aesthetic opinions and directing skills on the stylish Hong Kong action movies of the 80s and beyond. It considers his way of making films as one of the most characteristic treasures in the heritage of Chinese action cinema.