f disclosed transactions in which both seller and acquirer were domestic panies increased by 67 percent. The main sectors contributing to the increase were financial services, manufacturing and retail. The largest announced domestic deal in 2006 was Gome Electrical Appliance’s 61 percent acquisition of China Paradise Electronics, its competitor in home appliance retailing, for US$675 million. This transaction was partly settled by offering shares in Gome as permitted under the new regulations. Announced Mer gers and Acquisitions – China Source: Thomson Financial US$ million Number of deals Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Va lue US$ million Number of deals 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 10 0 0 20 0 30 0 40 0 50 0 60 0 70 0