term improvements in operation, buildup in technical expertise or other industry-related goals.
It generates more syngery if a private Chinese firm from the same industry is gonna acquire it.
but I am not sure whether Mr. Xiang is a serious businessman who is making a smart business move here or purely a show-off gesture out of nationalism. Now the valuation of Xu Gong is at its peak, since China is still in a boom period and people tend to extrapolate current abnormally high growth rate to derive a price.
In recession period, heavy industry firms are hit the hardest.
