China Resources shares fall on graft probe

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. 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 closed down nearly 10 per cent at HK $18.98, while the city’s benchmark Hang Seng Index slipped 0.13%. 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 2%. 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. Textile maker CR Jinhua closed up 0.21% at 14.32 yuan ($2.30) on Tuesday, while Dong-E E-Jiao -- which markets a health product made from donkey skin -- rose 0.29% to 34.51 yuan, according to AFP.