Moutai opens higher on plasticizer clarification

Shares of leading Chinese liquor producer Kweichow Moutai Co. advanced 1.44 percent, or 2.78 percentage points, to open at 196.99 yuan (31.30 U.S. dollars) per share Friday following a clarification the company issued regarding contamination rumors.

On Thursday, Kweichow Moutai Co. fell 1.24 percent to close at 194.21 yuan per share after a netizen using the name "Shui Jing Huang" claimed on Sina Weibo, a popular microblogging site, that a sample of the company's liquor had been found to contain toxic levels of plasticizer.

In a notice posted on the Shanghai Stock Exchange's website on Friday, Kweichow Moutai said it has closely followed relevant state laws and regulations on food safety in its production and operation.

Kweichow Moutai does not add any additives during the production process, the statement said, adding that the company has set up a complete food safety system.

The company has closely monitored raw materials, wares and vessels that come into contact with its liquor in order to ensure conformance with in a state and industry standards, the statement said.

Following a similar scandal that emerged in 2011 in Taiwan, the company has scrutinized every link in its transportation and packaging processes and upgraded its production process in order to avoid contamination, the statement said.

Basing on the results of a self-examination, the Guizhou-based company said its products are in accordance with relevant authorities' requirements concerning plasticizer content limits.

The company also vowed in the statement to increase investment and enhance external cooperation in order to improve its food safety.

Kweichow Moutai expressed gratitude to investors, consumers and the public for their concern while inviting on-the-spot investigations via the statement.

Jiugui Liquor Co. has also suffered from the scandal, incurring huge losses due to consecutive share retreats.