China’s regulators are investigating local media reports that US skincare company Nu Skin Enterprises (NUS.NYSE) engages in questionable business practices, sending shares of other retailers using similar practices plunging, Reuters reported. Nu Skin shares shed a third of their market value by Thursday afternoon. Shares of nutritional supplements maker Herbalife (HLF.NYSE) fell 10%, and USANA Health Sciences’ (USNA.NYSE) shares fell 12%. Xinhua news agency said Thursday the State Administration for Industry and Commerce (SAIC) ordered authorities to investigate a report in state-run People’s Daily that claimed Nu Skin had been exaggerating its influence and creditworthiness in brochures and organizing “brainwashing” gatherings.
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