Hong Kong Consumer Watchdog Apologizes and Reassess Nongfu Spring Products

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Nongfu Spring's shares traded in Hong Kong climbed 6.48% on Thursday, offsetting the losses triggered by a Monday report that raised safety concerns about its products

Shares of Chinese beverage giant Nongfu Spring surged after Hong Kong's consumer watchdog issued an apology for erroneously classifying its products and claiming they hit the European Union’s limit for bromate content.

The Hong Kong Consumer Council said in a statement Thursday that it had reassessed Nongfu Spring’s water sample and upgraded its rating after reclassifying the products. The bromate content in the tested products fell well below related standards set by the EU, making them safe to drink, said the council.

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Nongfu Spring's shares surged 6.48% after Hong Kong's consumer watchdog apologized for misclassifying its water products and regraded them as safe.
The watchdog initially reported that Nongfu Spring's water met the EU limit for bromate content, which caused a stock drop, later rectifying that it falls below EU standards.
Bromate, a compound with potential health risks, was found at 3 µg/L in the products, below the stricter US, Japan, and WHO limit of 10 µg/L.

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Who’s Who

Nongfu Spring: Nongfu Spring is a Chinese beverage giant, founded by billionaire Zhong Shanshan and based in Hangzhou. The company faced recent setbacks, including a misclassification by Hong Kong’s Consumer Council, rumors about investment controls, and pollution concerns. Its stock surged 6.48% after an apology and correction from the council, but has dropped over 20% since February due to various issues.

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What Happened When

February 2024：: Nongfu Spring's stock has dropped more than 20% since February 2024 amidst various setbacks.

Monday, July 15, 2024：: Nongfu Spring’s stock plunged 4.56% after Hong Kong Consumer Council's report raised safety concerns about its products.

Tuesday, July 16, 2024：: Nongfu Spring’s stock dropped a further 2.8%.

Thursday, July 18, 2024：: Hong Kong Consumer Council reassessed Nongfu Spring’s water sample, upgraded its rating, and issued an apology for the previous misclassification.