Kweichow Moutai Shares Open Down 1.5% After Regulators’ Warning
Lin Zhiyin | Zhang Yushuo
DATE:  Dec 25 2020
/ SOURCE:  Yicai
Kweichow Moutai Shares Open Down 1.5% After Regulators’ Warning Kweichow Moutai Shares Open Down 1.5% After Regulators’ Warning

(Yicai Global) Dec. 25 -- Shares of Kweichow Moutai [SHA: 600519], the world’s most valuable liquor maker, hit a new high this week. However, they opened down 1.49 percent today after being warned by two Chinese regulators yesterday.

The company, based in China’s southwestern province of Guizhou, said yesterday that it had received a regulatory letter from the Shanghai Stock Exchange, asking the company to avoid releasing undisclosed information in public because of the high level of attention it has received.

As New Year’s Day and Spring Festival approach, the State Administration for Market Regulation issued a notice to strengthen supervision of liquor prices, including Moutai, strictly investigating various forms of price fixing, price gouging, price fraud and other price violations that damage consumer rights and disrupt market order.

Kweichow Moutai’s controlling shareholder Kweichow Moutai Group would transfer 4 percent shares, worth over CNY90 billion (USD13.8 billion), to Guizhou State-owned Capital Operation, the company said in a statement on Dec. 23. Kweichow Moutai Group will remain Kweichow Moutai’s controlling shareholder with shareholding ratio down to 54 percent from 58 percent after the transfer.

Kweichow Moutai’s intraday stock price hit a record high of CNY1,900 (USD291.3) on Dec. 23. In a statement released today, the firm stressed that the exchange’s letter had nothing to do with the recent transfer of equity.

Shares of Kweichow Moutai [SHA: 600519] pared their losses to close down 0.019 percent to CNY1,830 today.

Editor: Peter Thomas

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Keywords:   Kweichow Moutai,liquor