* China Shuanghui's shares may drop 15-20 percent more this week - analysts
* Investors include Aegon-Industrial, China AMC and E Fund
* Sales may recover in April, back to normal in May, June - analyst (Recast, adds background, analyst quote)
By Jacqueline Wong and Samuel Shen
SHANGHAI, April 19 (Reuters) - A group of foreign investors including Temasek and Goldman Sachs may face more losses on their investment in Chinese meat producer Henan Shuanghui whose shares are expected to fall further this week due to food safety concerns.
Shuanghui shares fell by their 10 percent limit on Tuesday when they resumed trading after a month-long suspension, and analysts expect another 15-20 percent decline in the following days.
The stock was suspended from trading on March 16, after it slumped 10 percent the previous day, knocked by media reports that some of Shuanghui's meat products were contaminated.
The official Xinhua news agency reported in mid-March that authorities in the central Chinese province of Henan, where Shuanghui is based, closed 16 pig farms and sealed 134 tonnes of pork products after an illegal drug was reportedly used to produce lean meat. [ID:nTOE72F072]
The foreign investors are indirectly exposed to Henan Shuanghui Investment & Development Co Ltd through a special vehicle, Rotary Vortex.
Chinese institutional investors including Aegon-Industrial Fund Management Co, China Asset Management Co and E Fund Management Co are also likely to suffer.
"I think the stock may fall by another 20 percent over the next few days before stabilising due to market inertia," said Wen Xian, an analyst at Ping An Securities Co.
"But over the long term, stocks will recover because Shuanghui sales will eventually pick up. There could be good buying opportunities ahead."
Guotai Junan Securities analyst Hu Chunxia forecast a further drop of around 15 percent.
Shuanghui could not immediately be reached for comment. A Goldman spokeswoman said the bank has no direct relationship with the Chinese-listed company.
Shuanghui shares opened down 10 percent after trading resumed on Tuesday, falling to 70.15 yuan from 77.94 yuan at its March 15 close.
FOREIGN SHAREHOLDERS
A further 20 percent fall in Shuanghui shares this week would translate into a nearly 3 billion yuan ($460 million) unrealised loss for Shuanghui's second-biggest share holder Rotary Vortex, which owns 128.4 million shares, or a 21 percent stake, according to Thomson Reuters data.
Rotary Vortex's indirect shareholders include the Rise Grand Group Ltd, the Cardili Ltd, CDH, Temasek and Goldman, according to an exchange filing by Shuanghui. Both Temasek and Goldman own less than 7 percent of Rotary Vortex indirectly.
Dutch life insurer Aegon's Chinese fund venture Aegon Industrial Fund Management owns 23 million Shuanghui shares, or a 3.8 percent stake.
China Asset Management Co, the country's biggest mutual fund house, is Shuanghui's fourth-biggest shareholder, owning 19.7 million shares, or a 3.3 percent stake.
Shuanghui's top 10 shareholders also include E Fund
Management Co, Guotai Asset Management Co, the Chinese venture
of Italian insurer Assicurazioni Generali SpA , and
Harvest Fund Management Co, partly owned by Deutsch Bank
Despite short-term losses, Shuanghui shareholders may see their portfolio value recover over time, along with public confidence in the Shuanghui brand.
About 1.5 billion yuan worth of Shuanghui's products were pulled off the shelves between March 15 and March 20, immediately after the food safety concerns arose, but sales are expected to recover this month and return to normal in May and June, China Galaxy Securities analyst Dong Junfeng said in a report earlier this month. ($1 = 6.529 Chinese yuan) (Editing by Vinu Pilakkott)