Centuries-old Chinese medicine tastes sweet and bitter after Hong Kong IPO

The more than 300-year-old Chinese medicine brand Tong Ren Tang is facing a hit to its reputation, just a day after its flagship drug manufacturing and distribution unit made a stellar debut on the Hong Kong stock market.

The share price of Beijing Tong Ren Tang Chinese Medicine (TRTCM) more than doubled on Tuesday, evoking memories of the small-cap bull run during the internet bubble days.

But a nasty surprise for Tong Ren Tang, founded in 1669 during the Qing dynasty, came after the market close on Tuesday.

While many senior executives of Beijing-based TRTCM and Kim Eng Securities, the sole sponsor of its initial public share offering, were at a celebration dinner, the Hong Kong health authorities unexpectedly issued a statement ordering Tong Ren Tang Hong Kong Medicine Management (TRTHK) to recall a batch of branded Chinese medicine that was found to contain excessive mercury.

Acute mercury poisoning can cause inflammation of the mouth, while prolonged exposure to mercury can damage the neurological system and kidneys, the health authority said.