China Says Brokerage Too Bullish in Campaign Against Top Stock
- Shanghai exchange criticizes Essence Securities, Sina reports
- Kweichow Moutai has doubled this year on profit expectations
Photographer: Kevin Frayer/Getty Images
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A Chinese campaign about the risks of investing in Kweichow Moutai Co. shares intensified on Monday, with Sina.com reporting that the Shanghai exchange criticized a brokerage for being too bullish.
Essence Securities Co. failed to conduct “prudent analysis” on Moutai and fully disclose related risks when the brokerage raised its price target on the liquor maker last week, news portal Sina reported late Monday, citing a notice from the bourse. A commentary in the state-run Xinhua News Agency on Thursday said the stock should rise at a slower pace, while the company itself issued a statement saying analysts’ share price targets and valuations in the market are “overly high.”