BEIJING, July 9 (InfoChina) – Market rumor goes that China Electronics Corporation (CEC) is to purchase some shares of Semiconductor Manufacturing International Corporation (NYSE: SMI and HKSE: 0981.HK) with cash and integrate its subsidiary Shanghai Huahong Group with SMIC.
Li Ke, analyst from CCID Consulting, was quoted by media as saying that share swap between CEC and SMIC was conceivable. From the operational policy, SMIC concentrates on original equipment manufacture, while CEC covers nearly the full range of electronic businesses. From the point of market distribution, 90 percent of SMIC’s clients are foreign companies, while CEC sees 70 percent clients coming from the domestic market. As for the capital operation, SMIC expects more governmental orders though the cooperation with state-owned Huagong Group and Huahong will learn international experience from SMIC. Moreover, Huahong’s participation in SMIC may underpin SMIC’s price on Nasdaq and enable Huahong to be listed indirectly.
No official response has by far heard from any of the involved parties over the hearsay. (Edited by Yang Liu,
)
China Stock News 
