The news report quoted a media announcement by WBIC, saying that "it has ceased investment in China's movie theater market due to major regulatory changes".

The Chinese government in 2005 barred foreign investors from holding majority stakes in joint ventures in the entertainment sector.

WBIC will pull out of six theaters in six cities including Shanghai and Nanjing. "The final plan is under discussion," said the announcement.

The company has plans in 2004 to build 40 movie theatres in China by 2008 through local partners.

In 2003 China allowed seven cities to open theatres with 75 percent foreign investment on a trial basis.

The Shanghai Film Group Corp. has shown interest in buying stakes in the six theaters.

In 2005, eight theaters invested or managed by WBIC in China had total box office revenues of 120 million yuan (15 million U.S.dollars).