The shares for Jiugui liquor have rebounded, after the Chinese baijiu distillers products were found not to contain excessive amounts of sodium cydamate, a cancer causing artificial sweetner, a claim made by a distributor.
Jiugui’s stock price (SHE:000799) climbed 3.1 percent to CNY35.47 (USD 5.07) this morning. The shares had tumbled by 10 percent on December the 23rd after a distributor said that a batch made in 2012 contained too much hazardous additives.
Central Hunan province’s market regulator randomly sampled the Jishou based firms products from 30 batches on December the 24th.
Yesterday all the tests returned clean, local media outlets reported.
The selection did not involve the drinks sold by the above mentioned distributor, whose batch was an exclusive edition, according to the distiller. “The regulator will not be testing those products” said an official.
In November 2012 Jiugui’s products were exposed to be contaminated with plasticizers, liquid-thickening additives, by nearly three times the permitted amount.
The liquor firm Jiugui founded in 1956 counts state-owned China oils and food as its controlling shareholder.