China's food producers slide on report of stiffer rules

Foshan Haitian Flavouring and Food Co

06/11/2018 06:01

** Shares in China's food processors and producers fall,
after reports the government will establish a system to impose
heavy penalties on violators of food safety rules
    ** Leading the decline, dairy firm Lanzhou Zhuangyuan
Pasture  002910.SZ  slumps as much as 5 pct 
    ** Foshan Haitian Flavouring and Food  603288.SS , Inner
Mongolia Yili Industrial  600887.SS  and Jonjee Hi-tech
Industrial and Commercial  600872.SS  fall by 1-3 pct 
    ** An index tracking food and beverage firms  .CSISFBI 
slides as much as 2.5 pct 
    ** Drawing lessons from a vaccine scandal, China will
undergo reforms and innovation in food safety systems including
establishing a compensation system that will impose huge fines
on violators, domestic media Yicai quotes Zhang Mao, head of the
State Administration for Market Regulation, as saying 
    ** China's drug regulator imposed penalties on a unit of
Changsheng Bio-Technology  002680.SZ  worth 9.1 billion yuan 
($1.32 billion) over a vaccine scandal  urn:newsml:reuters.com:*:nL3N1WW46N 
    ** Changsheng Bio-Technology has lost nearly 90 pct of its
value since mid-July when the scandal broke, and the stock faces
the risk of being delisted
    ($1 = 6.9197 Chinese yuan)

 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))