Allegations may skupper China Resources restructuring

Alleged misconduct at state-run China Resources Holdings may torpedo the company’s plan to combine its China Resources Gas (1193.HKG) and China Resources Power Holdings (0836.HKG) units, Bloomberg reported. Shareholders will put the combination to a vote today. China Resources Gas closed trading Friday in Hong Kong roughly 17% higher than the bid from China Resources Power Holdings, indicating investors will consider the offer too low. State-run Xinhua News Agency published allegations on July 17 that the parent’s chairman Song Lin deliberately overpaid for coal mines in 2010. China Resources Power Holdings is undergoing a government audit.