A plan to rescue a troubled Chinese retailer has hit a snag after two shareholders revealed that they oppose the idea.

The plan was for Shandong-based Sanlian Group to take on part of debt-ridden Zhengzhou Baiwen debts and inject new assets into the company.

In return, Sanlian wants Baiwen shareholders to give it 98.79 million shares for free.

The outline plan, which would effectively give the Sanlian Group a listing on the Shanghai Stock Exchange, was approved by shareholders at a meeting in February but one shareholder that owns 169,000 shares has notified the company it is not prepared to hand over half its shares for free.

Another shareholder with just 600 shares, has rejected all terms of the bailout plan.

By Deborah Bowyer