China Warning Wipes $6 Billion From Stock Loved by Goldman
- Xinhua says Kweichow Moutai shares should rise at slower pace
- Liquor maker has more than doubled in Shanghai this year
Workers package China Kweichow Moutai Distillery Co. baijiu liquor at the company's facility in the Maotai section of the Renhuai District in Zunyi, Guizhou Province, China, on Thursday, April 7, 2011.
Photographer: Nelson Ching/Bloomberg
It’s not often that China’s official media agency takes aim at a specific stock.
But that’s what happened to Kweichow Moutai Co. on Thursday, when Xinhua News Agency said shares in China’s biggest liquor maker should rise at a slower pace. Within hours, the company had made its own stock exchange filing, says it hopes investors are cautious in making decisions, and that analysts’ share price targets and valuations in the market are “overly high.” The result was a plunge of as much as 5.8 percent in the Shanghai-listed shares Friday, their biggest decline in over two years.