Shampoo maker Bawang denies cancer-causing report

Chinese herbal shampoo maker Bawang International said Wednesday that a report by a HK-based magazine claimed two of Bawang's products contain a cancer- causing substance was "inaccurate and unfounded allegations against certain Bawang products".

In a statement filed with the Hong Kong stock exchange, the Guangzhou-based company said it "wishes to clarify certain information contained in a magazine article published today which carried magniloquent and inaccurate description about the Company' s products".

"All products of the Company comply with the stringent requirements of the current legal and regulatory manufacturing standards in China and have passed all related quality control tests. Approved by the Guangzhou Entry-exit Inspection and Quarantine Bureau, the Company's products meet all relevant safety standards of China mainland and Hong Kong," said the statement.

Its products also comply with European and U.S. standards. "The content of 1,4-dioxane found in our products is far below limits stipulated by the relevant authorities and organizations in these countries on the level of 1,4-dioxane in consumer products," it said.

Bawang said it was seeking advice on what actions it might take against the publisher of the magazine in relation to the report.

Samples of Bawang's two herbal shampoo products were found to contain 10 parts per million of 1,4-dioxane, which is considered as a cancer-causing substance, according to a report run by the Hong Kong-based Next Magazine.

Shares of Bawang International tumbled 14 percent to 5.05 HK dollars (65 U.S. cents) at the noon trading break on Wednesday before its trading was suspended. It was the worst daily performance since the shares debuted on July 3 of 2009.

Bawang also said application has been made to the Hong Kong stock exchange for the resumption of trading with effect from 9:30 a.m. local time on Thursday.

Source:Xinhua