SEC probes US movie studios over China dealings

The US Securities and Exchange Commission is investigating whether US movie studios violated the Foreign Corrupt Practices Act when signing agreements with Chinese officials, Reuters reported. The regulator sent inquiry letters to at least five studios, including News Corp’s (NWS.NASDAQ) 20th Century Fox, Disney (DIS.NYSE) and DreamWorks Animation (DWA.NASDAQ), over the past two months, said a person familiar with the matter. All parties declined to comment. US film studios lobbied the Chinese government in past years to loosen a cap on the number of foreign films that enter Chinese cinemas. Following Xi Jinping’s visit to Washington in February, China announced it would allow 14 additional 3D, IMAX or animated films to be shown in cinemas, increasing the yearly quota to 34 films. Hollywood has inked a number of deals since then, including DreamWorks’ announcement that it would build a production studio in Shanghai.