American Dairy Falls 40% as Growth Wanes

But some feel that the effects of those tighter regulations remain difficult to quantify in dollar figures. Because of that obscurity, the thinking goes, other problems may be curtailing the company's expansion. Said Hao Hong, an analyst with Brean Murray Carret, a small investment bank that specializes in Chinese small-cap companies, "Without some numbers, it's difficult to say what the main reason is" behind the slowdown. "People are getting a little concerned here," he said. "I don't blame them."

Shares of American Dairy were moving in late afternoon action Monday at $20.42, down $15.43, or 43%, on volume of 2.3 million shares, more than 12 times the daily average.