The chairman of China's giant State Power Corporation, Gao Yan, has reportedly fled the country after reports emerged of shady business deals during his time at the helm of the company, which generates more than half of China's electricity and owns most of the country's power grids.

While the exact nature of the charges remain unclear, it is understood that Mr Yan was involved in a deal in which shares of SPC had allegedly been repurchased by the company for a third of their retail value, causing a "loss of public capital".

Beijing had been expected to finally approve the power industry restructuring over the next month or so. The separation of the generation and distribution businesses was the key to the reform process.

The exit of Gao Yan could reflect on Li Peng, China's second in command. Mr Li has been a key player in China's electricity sector for more than two decades, and some observers suggest the industry was run by the Li family as its own personal fiefdom.