Rumor: Gome Switches Banking Partners
China Business News, 12/18/08
A senior source in the electronics industry has revealed that Chinese home appliance and consumer electronics retailer Gome (0493.HK) has ended its cooperation with large banks such as the Industrial and Commercial Bank of China (ICBC) and is now engaged with a line of local commercial banks to secure bank acceptance drafts for its home appliance manufacturers.
Gome's financing chain is likely under strain, and a restructuring of the company will be necessary to restore confidence and avoid reductions in business volume stemming from an inability to receive loans from large commercial banks.
Another senior industry source revealed, however, that most large commercial banks continue to support Gome.
Keywords: 0493.HK consumer electronics financing Gome hardware ICBC home appliances retail
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