Hiding info sees firm's shares off 7%
By Winny Wang |
April 26, 2011, Tuesday
|
Print Edition
Print Edition
HENAN Shuanghui Investment and Development Co fell 7 percent yesterday after it was found to conceal crucial information that may lead to further losses amid a scandal over its food safety.
Shares of the listed arm of China's biggest meat processor Shuanghui Group fell by as much as the 10 percent daily cap at one point yesterday in Shenzhen. They closed at 58.52 yuan (US$8.98).
A total of 169 funds held 216 million shares in Shuanghui last year, and the decline in its share price has cost them more than 5 billion yuan.
Shuanghui clarified in a statement to the Shenzhen Stock Exchange last Friday that it will fully refund dealers who have overstock meat products.
The statement was made in a response to the National Business Daily which reported on Friday that Shaunghui failed to disclose "fully-refund promise" in its earlier statements, which could have led investors to make wrong decisions.
The group has already refunded 112 tons of meat products, accounting for 4 percent of sales from March 24 to April 20, the statement said.
Shuanghui's shares have been suspended from trading since March 16, one day after China Central Television reported the group's subsidiary in Jiyuan, Henan Province, used pork tainted with the fat-burning drug clenbuterol in its products.
Clenbuterol is a chemical fed to pigs to prevent them from accumulating fat. It is banned as an additive in pig feed in China because it can end up in the flesh of pigs and is poisonous to humans if eaten.
Shares of the listed arm of China's biggest meat processor Shuanghui Group fell by as much as the 10 percent daily cap at one point yesterday in Shenzhen. They closed at 58.52 yuan (US$8.98).
A total of 169 funds held 216 million shares in Shuanghui last year, and the decline in its share price has cost them more than 5 billion yuan.
Shuanghui clarified in a statement to the Shenzhen Stock Exchange last Friday that it will fully refund dealers who have overstock meat products.
The statement was made in a response to the National Business Daily which reported on Friday that Shaunghui failed to disclose "fully-refund promise" in its earlier statements, which could have led investors to make wrong decisions.
The group has already refunded 112 tons of meat products, accounting for 4 percent of sales from March 24 to April 20, the statement said.
Shuanghui's shares have been suspended from trading since March 16, one day after China Central Television reported the group's subsidiary in Jiyuan, Henan Province, used pork tainted with the fat-burning drug clenbuterol in its products.
Clenbuterol is a chemical fed to pigs to prevent them from accumulating fat. It is banned as an additive in pig feed in China because it can end up in the flesh of pigs and is poisonous to humans if eaten.
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