It's not just Chinese workers at a Honda transmission factory and Foxconn, the Taiwanese contract electronics manufacturer, who are getting more money these days. Employees at both companies in southern Guangdong province locked in generous pay raises after a strike at the Honda factory and a series of worker suicides at Foxconn.

Christmas has also come early for shareholders in Hong Kong-listed Denway Motors, which holds a 50 per cent stake in Honda's successful joint venture car factory in Guangzhou, capital of southern Guangdong province. Denway is controlled by the Guangzhou municipal government. Last month the local government's automotive flagship, Guangzhou Auto (GAC), proposed a share swap with Denway shareholders. For each of their shares in Denway they would receive 0.38 shares in GAC.

Yesterday GAC said it would raise the offer to 0.47 shares, despite having already locked in support at the lower level from Templeton Asset Management, Denway's second largest shareholder with a 15.5 per cent stake. “GAC is of the view that the previous share exchange ratio [was] reasonable and the revised share exchange ratio will further enhance the attractiveness of the offer,” GAC said in a statement. “The [revised offer] shows GAC's full respect of shareholders' interests and GAC's willingness to share its potential growth with shareholders.”