UBS maintained Bawang Group (1338.HK)'s selling rating and lowered its target price for the stock from HK$4.30 to HK$3.20. Bawang Group is still suspended and is awaiting publication of an announcement. The reason has not been disclosed, but it is possible that the company needs to respond to reports from the Hong Kong newspaper “Ming Pao”; “Ming Pao” on Friday quoted an announcement issued by China's State Food and Drug Administration yesterday as reporting that Bawang International's two shampoo product labels contain false information. UBS said that the FDA has issued a warning to Bawang Group to replace the logo. The bank believes that the tough tone in the FDA's announcement is rare. UBS believes that this incident may further weaken consumers' confidence in Bawang products, and the company is working hard to recover its vitality from the mid-July dioxane incident. UBS lowered Bawang Group's 2010-2012 profit forecasts by 25%, 18%, and 16%, respectively, to reflect disappointing results for the first half of 2010 and expectations of a slowdown in sales growth. The stock fell 7.3% to HK$3.57 before trading was suspended.