Hollywood's Oscar glow could be dimmed by its biggest financial star. A cash crunch from China threatens to restrict what has been a welcome infusion of capital over the last few years.
More than $5 billion from the People's Republic was pumped into U.S. movie production between 2014 and the second half of 2016, according to California-based lender East West Bank. A frenzy of deals included Viacom's Paramount Pictures, which recently received $1 billion from Shanghai Film Group and Huahua Media to help finance a quarter of its film slate for three years.
The arrangements have worked well both ways. Studio bosses get the red carpet rolled out for them in the world's biggest movie market and much-needed funding as margins flatten out or fall.