The parent of a Chinese company that produces the nation’s best known baijiu liquor, Moutai, has led an investment of 1 billion yuan ($147 million) to form a life insurance company. Huagui Life Insurance, based in Moutai’s home province of Guizhou in Southwest China, started operating on Friday [24 February 2017]. It has ten other smaller investors after Kweichow Moutai Group…Full Article: China Daily Feb 2017
- According to a General Manager of Kweichow Moutai Group, the company views its investment in Huagui Life Insurance as a way to branch out into the finance sector.
- In July 2016, Kweichow Moutai (liquor producer) saw its share price increase to its highest level (CNY 317.19 or US$47.41) since the company started trading on Shanghai Stock Exchange in 2001. As of 8 March 2017, its share price had increased to CNY 367.25 (US$53.17).
- In March 2016, Tan Dinghua was placed under investigation by law enforcement authorities for “serious violations of party discipline” (i.e. corruption). A year earlier, in February 2015, Tan Dinghua had retired as Vice General manager of Moutai.
- In January 2016, e-commerce liquor retailer VipShop was found selling fake Moutai liquor. As a result, Vipshop stated it would suspend its liquor sales, including Moutai (~CNY 1,000 or US$150 per bottle).
- In 2015, the price for a 500ml bottle of Moutai 53-degree liquor (the company’s primary product) dropped to CNY 1,000 (~US$161) per 500ml bottle, while in 2012 a Kweichow Moutai 53-degree bottle sold for CNY 2,000 (~US$316).
- In December 2015, a liquor counterfeiter was sentenced to 5 years in prison in Guangxi Region. The counterfeiter re-filled high-end liquor bottle brands with cheaper alcohol and primarily distributed them in Beihai City, Guangxi region.
- In October 2015, Kweichow Moutai announced in Moscow that it would begin supplying the Russian market, focusing on Russia’s wealthy and high-end consumers.
- From June 12 to July 8 2015, Shanghai’s SSE Composite Index dropped -32.1%, while Shenzhen’s SZSE Composite Index declined by -40% due in part to substantial losses in Shenzhen’s NASDAQ type ChiNext board. Hong Kong’s Hang Seng Index, which is more open to foreign investors than its mainland counterparts, declined by only -13.8%. Lastly, the CSI 300 Index, an economic bellwether and China’s answer to the USA’s Standard & Poor’s 500, notched a -31.3% drop.
- In August 2014, Kweichow Moutai announced forming a joint venture with Yonghui Superstores and Shenzhen Guomaoyuan Commerce and Trade Co Ltd. Through the JV, Moutai would sell its liquor in Yonghui supermarkets. The profit breakdown would be 60% for Moutai and 20% each for Yonghui and Shenzhen Guomaoyuan.
- In February 2013, China’s NDRC (National Development and Reform Commission) fined Kweichow Moutai CNY 247 million (US$39.5 million) due to price fixing.
- In January 2013, the NDRC and Price Bureau in Guizhou Province investigated Kweichow Moutai in accordance with China’s 2008 Anti-monopoly law. Moutai was forcing distributors to sell at high prices
- In November 2012, Chinese product safety officials found excessive levels of plasticizers in a sample baijiu liquor that was manufactured by Jiugui Liquor Co.
- Established in 1999 in Guizhou province (southwestern China), Kweichow Moutai (SHA:600519) is a state-owned enterprise in China, specializing in the production and sales of Maotai liquor, together with the production and sale of beverage, food and packaging material, and development of anti-counterfeiting technology.
Hong Kong Trends