Although it originally housed the nightclub Palace Theatre (Chinese: 碧麗宮), it was later remodeled to be Hong Kong's most luxurious cinema of the same name.

The food and beverage corporation Maxim's also established a restaurant branch in the building, and garnered relative fame at the time.

In 1990, World Trade Centre Group Ltd (formerly Bond Corporation International Ltd) purchased the building from Hongkong Land for HK$1.72 billion.

The 1060 larger and wider seats, the luxurious lobby, and the middle to upper class clientele signaled the birth of high-end cinemas for Hong Kong movie-goers.

Between the period of 12 September 1981 and 22 April 1982, the box office at Palace Jade made 9.38 million HKD, also establishing a new record for foreign movies.