Chinese liquor makers continue to slide, Kweichow Moutai drops below 1,400 mark for first time since Jun 2020
COMPANY NEWS STOCKS
Chinese liquor makers continue to slide, Kweichow Moutai drops below 1,400 mark for first time since Jun 2020
COMPANY NEWS STOCKS

Chinese liquor makers continue to slide, Kweichow Moutai drops below 1,400 mark for first time since Jun 2020

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

China’s iconic liquor maker Kweichow Moutai plunged as much as 5.5% at one point in Shanghai to drop below 1,400 yuan mark for the first time since June 2020 and hit 1,383.85 yuan apiece. The shares have tumbled by more than 25% so far in October.

Other liquor makers are also sliding, with an index tracking the sector compiled by Wind Information slumping 4.4%, making it the worst-performing sector in the A-share market, compared to 0.2% loss for the benchmark Shanghai Composite Index.

The latest official data showed that China’s retail sales of tobacco and liquor reached 46.5 billion yuan in September, falling by 8.8% from a year earlier, weakening sharply from the 8% growth in August. That’s compared to the 2.5% growth for the country’s overall retail sales.

Earlier released earnings results showed that Kweichow Moutai’s earnings in the first three quarters of the year came in slightly weaker than market expectation, which analysts say reflected a weak recovery in the liquor sector this year.