Yili says operations normal

Yili Group, a major dairy producer in China, said Tuesday that the company's operations are normal after its shares plummeted by 6.28 percent on Monday, news portal cnr.cn reported, citing an unnamed company source.

A consumer found coagulation in one of Yili's milk products, Chengdu Economic Daily reported Monday, and Yili later responded that it was caused by logistics and storage problems.

"If the stock fluctuation was triggered by the media report, investors have overreacted to the issue, as the coagulation was very likely to be caused by high temperatures rather than food safety problems," Northeast Securities said in a research note on Tuesday. Shares of Yili fell slightly by 0.62 percent on Tuesday.