China Mengniu Dairy, the mainland's largest milk producer, suspended trading of its shares yesterday as it awaits the results of government tests on all its products after a chemical blamed for infant deaths was found in its baby formula.
Mengniu was among 22 major dairy producers whose products tested positive for melamine, which is being blamed for the deaths of at least three babies and sickening more than 6,000 on the mainland.
The company would recall all related products, suspend its production and offer compensation to affected consumers, it said on its website.
A company spokeswoman said it had asked the General Administration of Quality Supervision, Inspection and Quarantine to test all its products - from liquid milk, yogurt and ice cream to milk formula - and the company said results would be released in a few days.
Shares in other listed dairy firms embroiled in the scandal slumped on shrinking demand and amid concerns the health scare could spread to other dairy products.
The share price of Nasdaq-listed Synutra International, a company in Qingdao that makes and sells milk formula under the brand Shengyuan, has fallen 67 per cent since last Wednesday.
