Why China Is Targeting Shares of the Nation’s Iconic Liquor Maker
- Moutai makes a potent liquor favored by China’s ruling class
- State media said it rose too fast, triggering a five-day drop
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China got more than it bargained for when it took aim against one of the country’s best-performing stocks.
A week ago, the state-run Xinhua News Agency called out gains in Kweichow Moutai Co., the nation’s biggest liquor maker, saying it was rising too fast. Since then, the company -- which produces China’s most iconic baijiu alcohol in the mountains of Guizhou province -- has lost the equivalent of $16 billion in value, spurring a slump in other liquor and consumer shares.