HONG KONG, July 17 Shares in China Resources
Power Holdings Co Ltd tumbled as much as 10 percent on
Wednesday in what brokers said was a response to comments in
Chinese media alleging corruption in the state-run electricity
Shares of the company plunged to a day low of HK$17.94
before recovering slightly to HK$18.22 in early afternoon.
Nearly 22 million shares changed hands, making it the most
active counter on the exchange on Wednesday.
The company told the Hong Kong exchange that it was unaware
of any reason for the fall in the share price.
Several Hong Kong traders linked the fall to widespread
Chinese media reports citing a Chinese journalist affiliated
with the official Xinhua news agency who alleged that some China
Resources executives made the company incur hefty losses when it
took over a coal mine in 2010, and they were suspected of
"It is because of the Xinhua report," said Peter Yao, an
analyst with BOCI Reseach. "It is having a big impact on its
share price today."
The journalist and China Resources Power could not be
immediately reached for comment.
A report posted on Xinhua's website and on Chinese
twitter-like Weibo feed has the journalist, identified as Wang
Zhiwen, accusing the executives of "intentionally causing a loss
of billions of yuan of state-owned assets" through the
The report - which was picked up by numerous Chinese media
and news portals - along with the full submission the journalist
made to the Chinese Communist Party's disciplinary authority,
was later removed from Xinhua but is still visible on Weibo.
In May, China Resources Power announced that it plans to
merge with sister company China Resources Gas Group Ltd
, a natural gas distributor. The merger has yet to win
(Reporting by Charlie Zhu in HONG KONG and Beijing Bureau;
Editing by Raju Gopalakrishnan)