CHINA'S state-owned asset watchdog said yesterday that punishments will be imposed if ongoing auditing uncovers any illegal practices at China Resources (Holdings), a Hong Kong-registered conglomerate accused of corruption involving state-owned assets.

China Resources is currently being audited and the State-owned Assets Supervision and Administration Commission will act according to the audit results, the commission said.

On Wednesday, a journalist accused Song Lin, chairman of China Resources, and other executives of corruption that led to the loss of billions of yuan in state-owned assets.

Wang Wenzhi, a journalist at the Economic Information Daily, accused Song of intentionally overpaying for three coal mines that China Resources Power, the Hong Kong-listed subsidiary of China Resources, bought in 2010 in north China's Shanxi Province.

A lawsuit filed this month by six minority shareholders of CR Power in Hong Kong also alleges that the company and its partner overpaid for the mines. The lawsuit also alleges that none of the mines had exploration licenses when CR Power made the acquisition.

A court hearing will take place in Hong Kong on August 5.

The company said one mine received a license in April and efforts to obtain the other two are in progress.