Shares of Beijing Xiangeqing Co., a high-end catering firm [i.e. restaurant], continued to slump Monday following a restructuring announcement last week by the company’s founder, who pledged an all-around overhaul to move away from the high-end catering business as a way to survive the central government’s call for austerity. Shares of the Shenzhen-listed company tumbled 5.11% from the previous trading day to close at 8.72 yuan ($1.40) Monday [March 4th]…Full-text article: Global Times Mar 2013

Key points

  • The primary driver behind the Xiangeqing’s move towards the mass catering market is the government’s recent frugality and anti-corruption policy
  • Xiangeqing’s top domestic competitors in the high-end catering market, Quanjude Group Co. and Xi’an Catering Co., also recorded slumping profits

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