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Angst Over Chinese Spending Shaves $10 Billion Off Liquor Stock

  • Chinese distilleries face slowing economy and consumption
  • Moutai posts slowest quarterly profit growth in nearly 3 years
Baijiu Production Inside China's Biggest Distiller Kweichow Moutai Co.
Photographer: Qilai Shen/Bloomberg
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One of China’s most potent symbols of luxury spending at home -- the fiery liquor churned out by Kweichow Moutai Co. -- was dealt a $10 billion blow to its market value, the latest company to be hit by anxiety over a pullback in consumer spending.

Moutai, which makes the baijiu liquor that’s favored by China’s leaders and often prized as a luxury gift, plunged Monday after disappointing earnings. The company on Sunday posted its slowest quarterly profit growth in almost three years.