Domino effect takes hold in Pearl River Delta region

GUANGZHOU: The domino effect seems to have taken hold in the Pearl River Delta region following the closure of two factories of Smart Union, a major manufacturer of toys.

A handful of companies in the region has already closed with many more facing a similar fate, China News Service (CNS) reported yesterday.

In just a week, several Hong Kong-funded and listed companies including BEP International Holding Ltd, a household appliance maker; Gangsheng Electronic (Shenzhen) Co Ltd, an electronics supplier; and Peace Mark Holdings Ltd, a watch supplier, have all announced they will close their production facilities in Shenzhen.