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BaWang Shampoo Not Harmful, China Drug Administration Says

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July 16 (Bloomberg) -- BaWang International Group Holding Ltd.’s herbal shampoo products don’t threaten consumers’ health, China’s State Food and Drug Administration said in a statement on its website today.

The content level of 1, 4-dioxane in the sample products tested by the administration won’t harm consumers, it said.

BaWang, China’s largest herbal shampoo maker, fell today in Hong Kong trading, extending its decline to 23 percent since July 14, when a magazine reported that two of the company’s products contain a substance that may cause cancer.

The July 14 Next Magazine reported samples of BaWang’s anti hair-loss formula shampoo had 10 parts per million of 1,4-dioxane, a substance that may cause cancer.

The magazine report was “inaccurate and unfounded” and the company may take legal action against the weekly, the Guangzhou, southern China-based company said in a July 14 statement.

BaWang’s products comply with Chinese, Hong Kong, European Union and U.S. FDA standards, it said, and the amounts of the substance are too small to affect human health.

-Winnie Zhu.

To contact the editor responsible for this story: Bloomberg News at rdobson4@bloomberg.net

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