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Stake talks, stake denials

While Gome Electrical Appliances has not been implicated in the investigation swirling around its founder and chairman, Huang Guangyu, the fates of the man and his company are inextricably linked. Apparently executives from the electronics retailer have held talks with overseas rivals and private equity types to discuss the possible sale of a strategic stake. Whether anyone will bite while Huang remains in legal limbo is another question. But Bank of America emphatically denied reports in Hong Kong media that it was looking to sell 3-6 billion shares in China Construction Bank. “It’s not true,” a spokesman said. Doesn’t get any clearer than that. Bank of America clearly sees China as one of the bright spots in its global business, but evidence continues to mount suggesting that the economic slowdown is hitting China harder than what was previously expected. The latest sign: Industrial production grew by 5.4% in November, down from 8.2% in October, marking the slowest growth in a non-holiday month since records began in 1994. That’s what we call history in the making.

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