China Yurun Food Group Ltd, the nation's second-largest meat processor, rejected allegations of accounting irregularities and contaminated products as "groundless".

Yurun shares rose as much as 5.1 percent in Hong Kong trading on Friday after saying it has procedures to ensure that "assets are safeguarded, operational controls are in place, risks are properly managed".

Yurun hasn't found any food safety concerns related to its products, it said in a statement to the Hong Kong Stock Exchange.

The meat company fell 13 percent to HK$6.51 in Hong Kong trading on Thursday, the lowest since October 2006.

Agencies - China Daily