Hong Kong based magazine Next Magazine reported on May 14 that 1,4-dioxane or just called dioxane, a cancer-causing chemical had been found in shampoos made by Bawang International Group Holding Ltd. It’s said that samples of Bawang’s anti-hair-loss formula shampoo and its Royal Wind brand were tested by Swiss inspection and analysis company SGS.
Shares of Bawang immediately fell as much as 18% and the stock was later suspended from trading.
Bawang later responded in a statement saying that all of its products had undergone strict quality tests and met the standards required by the mainland and Hong Kong authorities. Its products also complied with safety requirements prescribed by the US and European Union food and drug administration.
SFDA (State Food and Drug Administration), China’s food and drug watchdog, issued a statement on May 16 saying that shampoos made by the Guangzhou-based herb shampoo manufacturer are safe to use. The level of a potentially carcinogenic ingredient was within standards.
The statement said the SFDA immediately investigated and tested samples of the products. The amounts of dioxane below 100 ppm were safe according to internationally agreed standards. But it did not specify the volume of dioxane in the Bawang shampoos.
Bawang is the biggest herb shampoo maker in China. Movie star Jackie Chan serves as a representative for Bawang products and Singer Faye Wong represents for the Royal Wind brand. Bawang was founded in 1989 in Guangzhou and got listed in Hong Kong stock market in 2009 with a business surge.