Commercial War Games Prelude: escalating war of domestic and foreign home appliance chain - Gome, Dazhong Electric Appliance - Network Appliance Indus

1, China Home Appliances Chain's largest foreign investment risk than the "soft invasion"

Exposure to U.S. sub-prime mortgage crisis and the impact of dollar depreciation, U.S. investment consortium MoraganStanley, CapitalGroup, TRowePriceInternationalFundsInc, etc. have increased the investment in Hong Kong stocks, as HKEx red chips (the Mainland to Hong Kong listed companies collectively) the largest volume , changing hands most frequently, the most active investment groups in action. China via Hong Kong stock market share of high growth, a US-funded investment in the consortium selected periodic hedging strategy. Therefore, a US-funded investment in Hong Kong equity consortium in addition to direct investment is more effective than the more direct (that effectively circumvent the dollar against the RMB exchange rate depreciation loss) profit from the carrier of the Chinese market.

Guer, Gome into effect on May 23 Jiancang based on lower threshold of hot money in the stock split to attract retail plan. U.S. capital investment consortium is undoubtedly play into the hands, the red chips will become increasingly sought-US investment consortium object, "big eat the small family" of stock market returns and the income share of double income growth in the Mainland market mechanism, perhaps the US-owned investment consortium " diversion "rush to the rescue home an important component of investment strategy.

Based on the above factors, on April 18 Gome Chairman of the Board willing to take Mr. Wong, the Hong Kong dollar exchange rate against the loss of tens of millions of yuan by GoldmanSachs (Asia) LLC (Goldman Sachs Asia: its parent company GoldmanSachsGroup, Inc. In 07 on May 11 temporary holding States United States 15.59%, the date of reduction to 0.67%) re-placement of 125.4 million shares, nearly 2 billion Hong Kong dollars cash. Although the proportion of its 38.15% stake was diluted to 35.55 percent, as of June 1 lead to US-funded consortium, and 39.18% shareholding ratio much higher than Mr. Huang Guangyu, but with an American investment consortium "substantial funds" to protect and M & A expansion funds than needed, TOB (hostile takeover) is clearly controlling the risks are minimal. Lenovo in May since the second-largest U.S. electronics chain CircuitCity (Circuit City) major shareholders WattlesCapitalManagement frequently took the lead to nominate five directors of the restructuring CircuitCity Board; and forced CircuitCity inspection of its accounting books of the "presumptuous" and even "excessive" demands ; BMOCapitalMarkets encourage more support for Blockbuster to spend one billion U.S. dollars announced acquisition of CircuitCity. Now, Gome is home board of directors of listed companies to "disregard", nominate Chang Cheng, Yung-duo were as

Triple Trading Company General Manager, Chief Financial Officer after the approval; Youyi unfinished audit by the refusal to send both a new post, which has triple trading company idling. Increasing the proportion of foreign shareholders of the country tomorrow, the United States, will repeat today, leaky house, the case is overcast and rainy, fall into a side was a rock of CircuitCity, triple trading company of the mistake, what things unpredictable, who can deny that possible?

Through a series of "squandering many to charming eyes" of capital operation, the current GOME (00493HK) successful "breakthrough," "Foreign Investment in Commercial Fields Supplementary Provisions (c)" shall not exceed 65% of the proportion of investment ceiling has been completed by the domestic enterprises to 100% foreign-invested enterprises, "Metamorphosis."

In addition, from the U.S. mainland of the acquisition of Best Buy holding fourth largest home appliance chain in China, Jiangsu Five Star Appliance. In 2008, home appliance chain in China funded

Suning Electrical and regional-based home appliance chain triple trading company, the Shenzhen Shun, electricity, process controlling, the National Health and appliances, trading companies, electronics, appliances and other large business counterparts from the United States or US-owned appliance foreign retail giants color between the "invasion and aggression "" M & A and anti-takeover "by war. China's largest home appliance chain risk than foreign home appliance chain of "soft invasion" the most clear-cut proposition footnote.

Second, the Chinese home appliance chain VS foreign national chain of self-defense fighting appliances Therefore, we will co-listed company trading companies triple light Hua Tiancheng Investment Co., Ltd. Beijing launched the "Battle of equity", more likely to be understood as a "national home appliance chain VS the sovereignty of foreign home appliance chain in self-defense war."

As an industry expert on the author in July 2007 compared to a foreign strategic investors, "Erotic witch", as the scale of growth that is only an illusion, the nature of corporate ownership of the decision of the future success of the Chinese home appliance industry, to remind China complete set of home appliances to avoid foreign investment, foreign investors understand the purpose of possession with Tang Seng Tang Seng rather than trying to live together. 100% of foreign identity Gome way through the curves obtained the status of triple trading company's largest shareholder, has started a 9.02% stake in contention, the applicable rules of law is the "foreign investors in listed companies for Strategic Investment", "Foreign Investment in Commercial area management approach "and" six ministries: foreign investors on mergers and acquisitions of domestic enterprises, "such laws and regulations.

In Changzhou Golden Sun, Black Swan in Harbin, Beijing Dazhong Electronics, Shaanxi CellStar, Dalian, national commercial chains such as information points, almost "no shot put" has been foreign home appliance chain Gome "without firing a shot" after another case of annexation Apart from the sun and out "14 million people Qi disarmament, demobilization, rather no one a man named" the sigh outside. Chairman Mr. Zhang Jisheng triple trading company launched the "equity Wars," gives us the impression that no doubt like 60 years ago, bloody and tragic Taierzhuang bloody battle! Triple trading company shares have not ended war, perhaps today is a national chain under the counter foreign home appliance chain's "Battle of sovereignty" and "Eve" to the national home appliance chain is "the most dangerous time", the need to "build our New Great Wall ", the need to" Brave the enemy's artillery forward? " I think this should be our focus each and every appliance and electronics chain industry by those who should be "Meditation," one of the issues.

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