Foreign private equity firms salivate at the prospects offered by the Chinese growth story. But restrictive regulations and unwilling sellers mean the country has largely resisted the buy-out kings, forcing them to focus on minority investments instead.
However, the disclosure yesterday of another corporate spat within Gome, the country's biggest electrical appliances retailer, will serve as a brutal reminder of the risks faced by foreign groups that invest in China.
Gome was founded by Huang Guangyu, once China's richest man, who was arrested and detained in 2008 for alleged corporate crimes and has been held incommunicado ever since.
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