A new Avengers 5 report reveals a few of the MCU characters who will appear, and it creates more confusion regarding the status of Shang-Chi 2. Since Avengers: Endgame, the MCU has been struggling to generate excitement about new characters in the Multiverse Saga. Eternals didn’t connect with many viewers, and shows like She-Hulk, Moon Knight, and Ms. Marvel weren’t massive hits. The one project involving a new hero that delivered in spades for critics and audiences was Shang-Chi and the Legend of the Ten Rings.

The film was the first MCU project led by an Asian hero, and it introduced audiences to a new world of Marvel, inspired by Asian culture and mythology. It also featured creative and fast-paced martial arts sequences that were a breath of fresh air from the standard Marvel action. However, since Shang-Chi‘s 2021 release, Marvel hasn’t confirmed a sequel, nor has the studio the many questions raised by the film’s events. According to the Avengers 5 report, Shang-Chi will return, making the sequel’s absence even more baffling.

Shang-Chi Will Appear In Avengers 5 According To New Update

A report from Deadline featured several new details about Avengers 5. The article’s lead is that Deadpool & Wolverine‘s Shawn Levy is Marvel’s top choice to direct the film, but Levy hasn’t accepted the job yet. Another interesting revelation is that the film could have a massive cast with “more than 60 MCU characters,” including Benedict Cumberbatch’s Doctor Strange, Mark Ruffalo’s Hulk, Karen Gillan’s Nebula, Tom Hiddleston’s Loki, Chris Hemsworth’s Thor, and Liu’s Shang-Chi. Each character would reportedly have equal billing, making the film more of an ensemble piece.

A dilemma that Marvel faces is that the studio still doesn’t know what it’s doing regarding its central villain. After Kang landed with a thud in Ant-Man and the Wasp: Quantumania and Jonathan Majors’ departure after his legal drama, Marvel still hasn’t shared its official plans for Kang or if he’ll be the central antagonist moving forward. According to the report, Avengers 5 could have multiple villains, which would make sense with Avengers: Secret Wars on the horizon.

The MCU’s Lack Of Shang-Chi Follow-Up Is Disappointing

Shang-Chi was a hit upon its release, snagging $432.2 million at the worldwide box office and earning a 91% critic score on Rotten Tomatoes. It started Phase 4 on a high note and is one of the brightest spots in the Multiverse Saga. Even though Shang-Chi was well-received by critics and audiences, Marvel hasn’t shown any urgency in capitalizing on the character’s popularity, nor Simu Liu’s rising star, as the actor has appeared in other hits since Shang-Chi, like Barbie. Shang-Chi 2 is a no-brainer, but Marvel hasn’t given it the green light.

Additionally, there are questions established in Shang-Chi that haven’t been answered yet. The post-credit scene featured Shang-Chi speaking to Wong, Captain Marvel, and Bruce Banner about the Ten Rings. It’s revealed that the rings are a beacon, sending a message to an unknown location or entity. It seemed like the rings would be essential to the Multiverse Saga, but they haven’t been mentioned again. It’s strange for Marvel to not address this, and it’s also bizarre that Marvel still hasn’t capitalized on the goodwill established by this movie.

Is Shang Chi 2 Happening & When Will It Likely Release?

Even though Marvel hasn’t confirmed Shang-Chi 2, Liu insists it’s happening. In a recent appearance on The Tonight Show Starring Jimmy Fallon, Liu said, “it’s definitely happening,” and that he and returning director Destin Daniel Cretton are “so beyond excited to jump back in.” For a while, Cretton was attached as the director for Avengers 5, but he left the project to focus on his other Marvel projects, including Shang-Chi 2 and the Wonder Man series, starring Yahya Abdul-Mateen II.

Meanwhile, Kevin Feige has stayed silent regarding any future plans for Shang-Chi 2, but there could be an announcement at D23 in August. Avengers 5 is scheduled to release on May 1, 2026, so if Marvel wants Shang-Chi 2 to release before that, it would need to start production fairly soon. Audiences want to see more of this character and his world, so Marvel would be wise to get going, whether it drops before or after Avengers 5.