Two stories from China

First: Female babies in China grow breasts as a result of drinking hormone-tainted formula:

The official China Daily newspaper reported today that medical tests indicated that the level of hormones in three 'test case' girls, ranging in age from four months to 15 months, exceeded those found in the average adult woman.

All the babies who showed symptoms of the phenomenon were fed the same baby formula.

Second: Chinese Formula Maker Prepares for Stock Offering:

As Yashili moves toward a public listing, potential investors will be keen to see how much market share it has clawed back from foreign brands, which Chinese consumers came to see as safer during the scandal.

Yashili's sales and profitability have recovered and overtaken pre-melamine scandal levels. But it has had to raise prices to cover the cost of the cleanup, a common theme across the industry, according to Mr. Siewert.

The factors driving growth in the industry are the growing affluence of the Chinese and a declining breast-feeding rate.

In 1998, 76% of mothers exclusively breast-fed children, according to Unicef, but that dropped to about 50% by 2008 as they sought to supplement their babies' diet.

The Chinese infant-formula market is the world's second-largest, surpassing Japan, and is expected to overtake the U.S. shortly, according to a report by Oppenheimer. The market is expected to grow at a double-digit rate in the next five to 10 years, the report added.