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U.S. regulators are investigating major U.S. movie studios’ dealings with China as the entertainment companies try to get a greater foothold in one of the fastest-growing movie markets in the world.

The Securities and Exchange Commission has sent letters of inquiry to at least five movie studios in the past two months, including News Corp’s 20th Century Fox, Disney, and DreamWorks Animation, a person familiar with the matter said.

The letters ask for information about potential inappropriate payments and how the companies dealt with certain government officials in China, said the person, who was not authorised to speak publicly about the letters.

The Chinese film market is seen as one of the largest potential markets for Hollywood, but it has also historically been tightly controlled by the state-owned China Film Group.

China Film Group had limited foreign films to 20 per year, but it eased some…

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