China's attempts to stanch foreign capital outflows is taking a toll on Hollywood, The Wall Street Journal reported, upending a deal that would have handed over iconic studio Metro-Goldwyn-Mayer (MGM) to Chinese control and placing a question mark over other big deals.
The world's second-largest economy's sluggish performance has triggered an exodus of capital, which last drove the Chinese yuan to its biggest yearly loss since 1994. Officials have moved to halt that decline by slapping capital controls on money moving out of the country.
Last year, talks broke down between MGM and several Chinese companies, the publication reported, citing people familiar with the matter. The pullback comes at a time when a massive influx of money from China has boosted the coffers of big Tinseltown productions. A separate report in the New York Post said on Friday that MGM was in "advanced talks" to be acquired by a Chinese buyer.
MGM, which is the powerhouse behind the "James Bond" franchise, declined to comment to the WSJ, and could not be reached by CNBC on Saturday.
Recently, Chinese investors have funneled $3.5 billion into a deal for Legendary Entertainment, and a $1 billion film-financing infusion for Paramount Pictures last month.
Read more about this report at The Wall Street Journal.