cheung kong rejects accounting claim Cheung Kong (Holdings) has hit back at a Standard & Poor's report that charged Cheung Kong Infrastructure (CKI) with equity accounting for revenue and assets at its Australian power assets while keeping debt attributable to the ventures off its balance sheet. In a statement, Cheung Kong said its accounts were prepared in accordance with generally accepted accounting principles. It defended the treatment, saying such off-balance-sheet debts were not guaranteed. As such, the 'theoretical consolidation of debts' stated by S&P was 'highly questionable', it said. The United States rating agency said CKI's gearing ratio would soar to 49 per cent from 30 per cent if the firm's debts were fully consolidated. asset management firm clear to launch fund Allianz's joint-venture asset management company in China has won approval to launch its first fund to local investors for stock and bond investment, the company said. Guotai Junan Allianz Fund Management's minimum 200 million yuan (HK$188 million) open-ended fund - the Desheng Stable Securities Investment Fund - will be offered between July 3 and August 1.Reuters currency gains push up exchange fund holdings The total assets of the Exchange Fund stood at $989.5 billion at the end of last month, up by $10.4 billion from a year earlier. The Hong Kong Monetary Authority said the increase was mainly due to the value of foreign currency held by the fund increasing by $4.9 billion. Hong Kong dollar assets were up by $5.5 billion, reflecting a rise in Hong Kong stocks. china resources loan China Resources (Holdings) has signed a $3.95 billion unsecured revolving loan facility with 17 local and international banks. The company said it would use the facility for working capital. comba in $500m issue Listing candidate Comba Telecom Systems aims to issue 200 million shares to raise about $500 million, according to a source close to the underwriting syndicate. The telecommunications equipment company hoped to price its offering at eight to 10 times price to earnings. HSBC is the listing sponsor. elegance profit falls Optical frame and sunglass manufacturer Elegance International Holdings announced a net profit of $55.72 million for the year to March 31, a decline of 29.7 per cent from $79.34 million a year earlier. Turnover was $383.98 million, up 3.6 per cent from $370.39 million previously. pearl firm's fortunes rise Pearl company Man Sang International posted a 30.4 per cent rise in net profits to $26.6 million for the year to March 31, compared with $20.4 million the year before. Turnover grew by 14.3 per cent to $323.1 million. Man Sang said it would strengthen sales of South Sea pearls, which make up 50 per cent of its turnover.