Moutai’s $80 Billion Rout Sends Signal for China’s Stock Market
- Investors sell most-loved stocks, whose valuations surged
- Signals on future monetary policy also cool former hot trades
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Kweichow Moutai Co. investors are selling their shares at the fastest pace in more than two years, a warning for a market that owes much of its rally to a handful of large caps.
The biggest stock listed in mainland China has lost $80 billion since onshore markets reopened after the Lunar New Year holiday. Wednesday’s 5.1% drop put Moutai’s five-day decline at 16%, the biggest for such a period since October 2018. The company had rallied 30% this year through its Feb. 10 record close.