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Chinese shares opened lower Tuesday

0 CommentsPrint E-mail Xinhua, April 19, 2011
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Chinese shares opened lower on Tuesday with the benchmark Shanghai Composite Index down 0.61 percent to 3,038.81.

The Shenzhen Component Index opened 0.96 percent lower at 12,876.2.

Henan Shuanghui Investment & Development Co. Tuesday resumed trading after a suspension due to a scandal, but shares immediately plunged by the 10-percent daily limit to 70.15 yuan.

The listed company of China's largest meat processor Shuanghui Group announced to suspend trading of its shares since March 16, one day after China Central Television reported Jiyuan Shuanghui Food Co., Ltd., purchased pig fed with feedstuff containing Clenbuterol.

Clenbuterol is a chemical that can be fed to pigs to prevent them from accumulating fat. It is banned as an additive in pig feed in China because it can end up in the flesh of pigs and is poisonous to humans if eaten.

Market expects a 10-percent plunge for at least two consecutive trading days after trading resumes.

The scandal is expected to cost 1.34 billion yuan in business revenue for Shuanghui Development, the listed company said in a statement to the Shenzhen Stock Exchange.

It said the company's net profits will total 265 million yuan to 270 million yuan, up 20 percent to 22.7 percent from the same period of last year. The growth rate is lower than that in the first quarter of previous years, the statement said.

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