Latest News:  
Beijing   Sunny    17 / 4   City Forecast

People's Daily Online>>China Business

Ban on wine purchase hits stock market

(Guangzhou Daily)

15:57, March 28, 2012

Chinese government put a ban on the purchase of high-end wine with public money recently. (Rednet.cn/ Wang Nailing)

Edited and translated by Yao Chun, People's Daily Online

The share prices of high-end wine fell sharply yesterday as the Chinese government put a ban on the purchase of high-end wine with public money.

The share price of Moutai, China's national liquor, slid by 6.4 percent, causing the disappearance of 14.2 billion yuan in one day. Though the spirit shares will experience a pull-back in the short term, they remain a potential and profitable plate in the stock market of China.

It is widely believed that the government consumption contributes a lot to the high prices of Chinese high-end wine. Some media reported that government procurement had become a major sales channel of Chinese high-end wine.

If the government holds a strict control on public money spending on banquets, the sales of some high-end wine will be affected, said a wine industry analyst.

But the stocks of high-end wine producers are still one of the favorite choices of investment institutions and the callback of the stock prices may bring new opportunities, the analyst said.

Email|Print|Comments(Editor:马茜)

Leave your comment2 comments

  1. Name

wende at 2012-03-2871.255.86.*
High end wine should not be limited to China"s domestic brands but must include those from foreign sources, such as champagne and brandy.
Harald at 2012-03-28130.82.69.*
I do believe it should say "spirits", as wine is 葡萄酒 not 白酒, Moutai is a spirit, not a wine, as far as I know
  

Selections for you


  1. Drought dries up Heilong pond in Lijiang

  2. Yao mountain in Yunnan’s Qiaojia county

  3. China Fashion Week enters 5th day

  4. Fire destroys 200 homes in Philippines

Most Popular

Opinions

  1. How far away are we from nuclear terrorism?
  2. Benefits, not values, define BRICS unity
  3. China slams Japan's move over Diaoyu Islands
  4. More efforts needed for enhancing nuclear security
  5. Chinese solar companies to fight US tariffs
  6. South China Sea mapping underway
  7. Safer world, safer energy
  8. Keep talking, Hu urges
  9. US' human rights violations
  10. Leung wins Hong Kong election by wide margin

What's happening in China

Chinese stocks plunge on economic concerns

  1. Tibet marks emancipation of serfs
  2. China orders disaster relief drills around May 12
  3. Nation gets serious about seatbelt use
  4. China vows to regulate forgery-filled relics market
  5. Beijing invests heavily in its southern suburbs

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai