Poor sales and reports of an incident involving pesticide residue drove the wine producer Changyu's share price down by 30.48 percent in the third quarter of 2012.

The plunge caused 126 funds to lose an estimated 1.2 billion yuan ($190.8 million), according to Securities Daily.

The sharp decline in sales and reports about the incident involving pesticide residue caused the decrease in Changyu Pioneer Wine Company Ltd Yantai's stock price, a food and beverage industry analyst told the Securities Daily.

By the last week of September, Changyu's share price had hit its lowest point in three years.

The company's sales revenue decreased 2.5 percent year-on-year, reflecting the weak sales, the analyst said, citing the economic slowdown.

Another cause of Changyu's poor performance in the stock market were reports of an incident involving pesticide residue, which is said to have occurred in August. Despite the company's release of a statement to burnish its reputation, the effects of those reports linger on, the paper said.

Funds that bought shares in Changyu have started to sell them. Statistics show that 408 million yuan worth of Changyu's shares were sold in the third quarter, the paper said.