Dukang Distillers

Dukang Distillers / Bai Jiu: The baijiu industry has suffered a major setback after plasticizers were allegedly found in almost all brands of the liquor. On Monday, shares in the Shenzhen-listed Jiugui Liquor Co, a large baijiu manufacturer based in Hunan province, were suspended from trade after business news website 21cbh.com reported the co's products were found to contain excessive plasticizers. Authorities in yesterday responded that an investigation has been launched to understand if there is any illegal activity involved in the baijiu-making processes. Plasticizers are toxic chemicals that can cause damage to men's reproductive health and cause female precocious puberty when consumed over a long period of time, among other maladies. Following the revelations, Chinese baijiu shares have slumped 5.87%, about Rmb33b (US$529m) in market value. Even though stocks recovered slightly yesterday, the baijiu market is still facing a crisis, according to a mainland news service.