Huang Guangyu: Gome Founder's Fall from Grace




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A Mighty Fall Contd..

Some analysts said there was a political twist to the case. Joseph Cheng, chairman of the Contemporary China Research Center at the City University of Hong Kong said, "Corruption is quite rampant in China and businesspeople in general believe they have to offer bribes to get transactions done. When political leaders get into trouble, either because of corruption or because of factional struggles, the business groups associated with them tend to get into trouble also." ....

According to Rupert Hoogewerf (Hoogewerf), publisher of Hurun Report8, "[The case] shocked a lot of the entrepreneurial class - the fact he was taken down, but also the fact he allowed himself to be. It's one thing to be ambitious and have a good business but another not to have put in place protective measures - cultivating government relations that would be able to avoid things getting to the courts. He has to have done something pretty bad or upset someone pretty important.....

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The Beginning

Guangyu was born in Fenghu village, Shantou, Guangdong, Southern China, in 1969. His parents were farmers. While in school, Guangyu sold used books and discarded bottles in order to earn extra income to support his family. When he was 16 years old, he dropped out of school. In 1985, Guangyu and his brother invested their own capital of RMB 4,000 plus another RMB 30,000, taken as a loan from friends and relatives, to buy radios and electronic watches from manufacturers in Guangdong and sell them in Inner Mongolia. The price difference between Mongolia and Southern China ensured they made a decent profit. ....

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