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Chinese Liquor Giant’s Stock Price Plummets After Free Handover of Shares to Local Government

Business Capital Group China China Business & Economy China Society Chinese Regime Companies government debt Guizhou Gujing Gongjiu Kweichow Moutai Laobaiganjiu Luzhou Laojiao Maotai baijiu

Chinese Liquor Giant’s Stock Price Plummets After Free Handover of Shares to Local Government

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Stock prices for Chinese liquor brand Kweichow Moutai have fluctuated for four consecutive trading days, causing losses to its 100,000 shareholders. Meanwhile, Moutai and other liquor giants have recently given a large amount of their stock shares to local governments that are heavily in debt. These transactions have attracted attention from Chinese media outlets. Kweichow Moutai Co. is known for its production and sales of the famous Chinese liquor baijiu. It is a partial publicly-traded, and partial state-owned enterprise in China, and a subsidiary of Kweichow Moutai Group, which in turn is owned by the Guizhou provincial government. Kweichow Moutai’s stock price plummeted on Jan. 19 afternoon, and closed at 2.6 percent at the end of the day. It was the largest one-day drop since Oct. 27, 2020, and the company’s market value dropped by 67.4 billion yuan (about $ 10.3 billion) in a single day. As of Jan. 19, …

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