Chinese graft probe in Hong Kong

Anti-corruption officers in Hong Kong have arrested two men alleged to have bribed officials at a Chinese state-owned company in the territory.

Two executives of the company the China Travel International Investment Hong Kong Ltd have already resigned and are thought to be under house arrest on the mainland.

They had been posted to Hong Kong to turn the company into a massive conglomerate with a market capitalisation of billions of dollars.

Some newspaper reports said the investigation was ordered after China's prime minister, Zhu Rongji, received letters containing details of the alleged corruption.

The BBC Hong Kong correspondent says China's battle against corruption now appears to have extended as far as Hong Kong.

From the newsroom of the BBC World Service