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Moutai rebuts contamination accusation


08:26, December 11, 2012

BEIJING, Dec. 10 (Xinhua) -- Leading Chinese white-spirits maker Kweichow Moutai Co. on Monday cited positive test results from three quality inspection institutions after trading of its stocks was suspended over contamination rumors the same day.

In its statement filed to the Shanghai Stock Exchange, the Guizhou-based firm attached reports from the state quality inspection authority and a provincial authority at its place of origin, both dated August this year, along with a third report dated December by the Shanghai-based Intertek to counter recent additive accusations.

All reports showed samples of its products did not contain excessive levels of plasticizer and conformed to national standards.

In the statement, Moutai also posted photographs of its production and operating sites and labs, while inviting on-the-spot investigation from consumers, investors and all levels of quality inspection authorities.

Moutai's statement came after a netizen named "Shui Jing Huang" claimed last week in his personal blog that a sample of the company's liquor had been found to contain toxic levels of plasticizer.

The alleged Hong Kong investor posted pictures of the test report on Sunday night, causing Moutai's emergency trading suspension.

Buoyed by the market's overall warming performance, trading of other Chinese alcohol producers picked up on Monday after the sector suffered great losses following a scandal which began in late November over products found to be tainted with plasticizer.

Jiugui Liquor Co., the first company embroiled in the affair, saw its stocks rise by nearly 6 percent by Monday's close.

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