This article aims to clarify the relationship between cultural identity, cultural confidence, and folk activities; to strengthen the role of folk activities in improving cultural identity and cultural confidence. Study participants were 454 people participating in Moon-cake Gambling at the Mid-Autumn Festival in Xiamen, China. The participants completed measures of personal information, involvement, perceived value, authenticity, cultural identity, and cultural confidence. Structural equation modelling indicated involvement to be associated with higher authenticity of folk activities, value perception, and cultural identity. Value perception and authenticity were associated with higher cultural identity and cultural confidence, which was also associated with higher cultural confidence. These results suggest creative transformation of the authenticity of folk activities to enhance the cultural identity and cultural confidence of local culture. [ABSTRACT FROM AUTHOR]