China's Nu Skin probe drags down Herbalife, USANA too

[riky]

China's Nu Skin probe drags down Herbalife, USANA too

China's regulators launched probes into skincare products maker Nu Skin Enterprises Inc after local media questioned the U.S. company's business practices, dragging down shares of several retailers that use similar distribution models. Nu Skin shares shed a third of their market value by Thursday afternoon. Shares of nutritional supplements maker Herbalife Ltd fell 10 percent, while those of USANA Health Sciences were down 12 percent. Earlier Thursday, the Xinhua news agency said the State Administration for Industry and Commerce (SAIC) ordered local authorities to investigate a report in Communist Party mouthpiece, the People's Daily, alleging Nu Skin had been exaggerating its influence and creditworthiness in brochures and organizing "brainwashing" gatherings.

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