Thursday, July 30, 2015   

China Resources shares plunge on graft probe
(04-22 15:12)

The Hong Kong-listed shares of China Resources plunged on Tuesday after the head of the state-owned Chinese conglomerate was sacked amid allegations of corruption.
Beijing on Saturday announced the removal of Song Lin as chairman and party chief of the company for suspected law violations, state media reported using terms which typically refer to corruption, AFP reports.
The firm, which has five listed units in Hong Kong, has also been accused of malpractice in a takeover deal involving lucrative coal mine assets in China.
Shares in the conglomerate's flagship China Resources Power Holdings were trading down 10 percent in the afternoon at HK$18.9, at which time the benchmark Hang Seng Index was flat.
Shares of the group's other subsidiaries -- China Resources Enterprise, China Resources Land, China Resources Gas and China Resources Cement -- were all down by more than three percent in afternoon trade.
China Resources also has five units listed in mainland China, but three have been suspended from trading for days for what the companies say is restructuring.
On Tuesday afternoon, textile maker CR Jinhua was unchanged at 14.29 yuan while Dong-E E-Jiao -- which markets a health product made from donkey skin -- fell 0.23 percent.
China Resources, a Fortune magazine Global 500 company in 2013, has a range of business interests including the retail, power, property, natural gas and pharmaceutical sectors, according to its website.
Chinese President Xi Jinping has pursued a highly-publicised anti-graft drive since taking office, vowing to go after both senior "tigers'' and low-level "flies''.
He has warned that graft could "destroy the (Communist) party'', threatening ''no leniency'' for those involved.
The announcement of Song's removal came just two days after the party's corruption watchdog said the executive was under investigation.
A journalist with the Economic Information Daily newspaper, which operates under the state news agency Xinhua, has accused him of accepting bribes, laundering money and keeping a mistress.   
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