Chinese food safety officials were investigating reports that hormone-tainted milk powder had caused baby girls to show signs of premature sexual development …Shares of Chinese baby-formula maker Synutra International fell as much as 35% yesterday, after Chinese media linked it to allegations of abnormal development in baby girls. In a statement yesterday, the company denied the reports and said it was in the process of taking legal action to protect its brand. "We have worked closely with state authorities, including…the office of food safety, to test product samples, to prove that these claims are false…" Synutra's chief executive, Liang Zhang said…