SHANGHAI- CHINA'S leading spirits maker Kweichow Moutai and major wine producer Yantai Changyu Pioneer Wine denied rumours on Wednesday that their products contain a chemical believed to cause cancer.

The companies filed separate statements with the Shanghai and Shenzhen stock exchanges respectively, dismissing Chinese media reports and Internet postings saying their products contained sodium nitrate.

The reports made the beverage companies the latest focus of consumer fears after melamine, a chemical used to make plastic, was found in the products of major milk producers.

About 53,000 infants have been sickened by tainted baby formula and four have died.

Moutai said it has been in contact with the national inspection agency and stressed the reports were not true.

'Several media had incorrect reports based on rumours, which misled investors and consumers, ruined the company's reputation, and led to economic losses to the company and investors,' it said.

Changyu said it never used or produced sodium nitrate and that it has not been subject to any investigations.

'The national quality inspection bureau has not recently inspected our products,' it said.

Shares in both companies rebounded after the denials, with Moutai up 5.13 per cent and Chanyu up 0.55 per cent. -- AFP