CHINA> News
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CHINA> News
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China dairies see investors dump stocks
By Du Wenjuan (Chinadaily.com.cn)
Updated: 2008-09-23 17:38
China's three leading dairy companies, in the swirl of the tainted milk scandal, saw their stock prices plunge Tuesday. The price of Mengniu, China's largest dairy producer in volume, dived 64.6 percent to 7.68 Hong Kong dollars Tuesday at the Hong Kong Stock Exchange.
Investors also dumped the stocks of Shanghai-based Bright Diary, the No. 3 dairy producer in China. Its shares plunged to 4.03 yuan or 10 percent. Analysts predict that the three dairies' stock will be on a continuous free fall, and begin to question the possibility of survival for the three dairies, as the government has not decided to give them a policy support. In the wake of a baby milk formula scare with the local dairy producer called Sanlu, based in Shijiazhuang, Hebei Province, adding industrial chemical melamine to the formula and hospitalizing about 13,000 Chinese children, the state quality supervision authorities have, in their expanded investigations, found similar melamine contents in products of the three leading dairies. Chinese consumers have been infuriated by the scandal, and investors have chosen to dump their stocks. Compared with the bleeding of the above three dairies, Beijing-based Sanyuan Dairy's shares surged the daily limit of 10 percent at Shanghai bourse for the fourth trading day, up 46.67 percent in total since Thursday. Sanyuan's milk was detected safe during the nationwide probe. |
