Hong Kong Financial News

There is another piece of news on the fall of another factory in the Pearl River Delta region owned by Hong Kong-listed company. BEP International’s Shenzhen subsidiary, Bailingda Industrial (Shenzhen) Co., Limited, which manufactures small home electrical appliances like irons and water boilers, will close its Shenzhen factory this Monday, affecting around 1500 workers. They expect the closure of this subsidiary would lead to intervention such as forced liquidation from the PRC local authorities. On the other hand, they expect their listed entity is not affected and from now on it will move its focus from manufacturing to trading of home electrical appliances and certain electronic components such as valves and sensors. The listed company will start its trading business under a Hong Kong subsidiary called Smart Luck Trading Limited.

It is not too healthy to see companies being shut down every one or two day. It caught my surprise too that a 62-year old renowned home appliance retailer, Tai Lin, was insolvent and shut down last Friday. The financial crunch that got started from subprime in the US last year has spread to Hong Kong in full speed. I am definitely not surprised to see a few more well-known Hong Kong enterprises to go under in the next few months.

October 19th, 2008 | Tags: 2326, Balingda, BEP International, insolvency, liquidation, Smart Luck Trading, Tai Lin | Category: Companies | Leave a comment