21st Century Business Herald, 2/10/09
The Guangdong Provincial Finance Bureau and the Economic and Trade Commission of Guangdong Province have held a press conference to announce the first round of enterprises to qualify for a government promotion to subsidize the cost of consumer electronics in rural areas by 13%. Home appliance and consumer electronics retailers Gome (0493.HK) and Suning (002024.SZ) both failed to make the list of eligible companies. A spokesperson for Gome stated that the company would likely be one of the companies listed in the second round of bidding.
A source has claimed that Suning was angry at failing to make the list, and reported the matter to the Ministry of Commerce (MOFCOM), leading to MOFCOM issuing a requirement that each province was to release a second round of 10 companies that would also be eligible for the promotion. With the exception of Tibet and Ningxia, bids by Gome and Suning have been successful in all other provinces.
Keywords: Economic and Trade Commission of Guangdong Province government subsidy 002024.SZ 0493.HK bidding consumer electronics Gome Guangdong Guangdong Provincial Finance Bureau hardware Ministry of Commerce rural home appliances retail