[November 18, 2009] Giant Interactive establishes five subsidiaries to reform property rights Tweet BEIJING, Nov 18, 2009 (Xinhua via COMTEX) -- Giant Interactive Group, Chinese online video games operator (GA.NYSE) announced on Wednesday to formally start its reform of property rights by establishing five subsidiaries. The company holds 51 percent shares in each subsidiary and the members of the projects' core team hold the rest 49 percent. According to the company's articles of association, these five subsidiaries have full decision-making autonomy, including the research and development (R&D) of projects and domination of the manpower, material and financial resources. The core team numbers and the parent share profits gained from each project in proportion to their respective contributions. Liu Wei, president of Giant Interactive Group, said that online games are creative industry, so R&D personnel are core assets. The aim of the company's reform of property rights is to let the R&D teams become their own "boss", stimulating their entrepreneurial potential and to achieve win-win results with the subsidiaries. The president expressed that the company's projects, such as "Zhengtu 2" and "King of Kings 3" would enter into the market in these two years. If they perform well, the company would support the projects to form subsidiaries. Online game sector has become one of the fastest growing sectors of the cultural and creative industries in China. Giant Interactive Group is a Chinese online video games operator listed on Nasdaq. The Group is engaged in the development and operation of online games through its subsidiaries in China. [ Back To TMCnet.com's Homepage ]