The Chinese conglomerate Dalian Wanda is facing regulatory hurdles to wrap up the $1bn buyout of the U.S production company Dick Clark Productions. However, the Wang Jianlin led conglomerate deal is not being clamped down by the tough U.S regulators, but by Chinese regulators.

According to two people close to the deal, the Dick Clark Productions acquisition has hit a snag due to Chinese regulators' growing concern on capital outflow. However, both sources have pertinently mentioned that the deal has been delayed and not denied, indicating that the $1 billion deal is unlikely to collapse.

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Another source close to legal proceedings confirmed that Dalian Wanda's ability to seal the deal has been affected by recent capital out flight restrictions.

Dalian Wanda and Dick Clark Productions have declined to comment on the matter.

In November last year, China's foreign exchange watchdog and Ministry of Commerce ordered banks to block those deals that allow Chinese companies to own foreign assets that lie outside the domain of their primary business. The Ministry of Commerce explicitly mentioned that they would closely monitor the real estate and entertainment-related deals.

The Chinese companies have gone overboard over the last two years to buy foreign assets from across the sector, with two conglomerates HNA Group and Wanda Group leading the charge. Both groups agreed to flush out $220.4 billion in acquisition deals last year, according to data by Thomson Reuters.

As a result, billions of money flew out of China due to this acquisition spree, bringing an ominous pressure on Chinese Yen, which has considerably lost value against the U.S dollar over the 12 months.

The Dalian Wanda, which operates world's largest cinema chain, is been showing great amount of interest in acquiring Hollywood studios. Last year, it acquired the Legendary Entertainment for $3.5bn and AMC movie theaters in 2012.

Its deal to acquire Dick Clark Productions is considerably noteworthy, considering that it specializes in live entertainment programming and its programs have won several prestigious awards including The Golden Globe Award.

TagsDick Clark Productions, Dalian Wanda, china, chinese regulators, Chinese Acquisition, wang jianlin