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China’s ‘national team’ ditches Kweichow Moutai, adding to valuation woes

Central Huijin Investment and China Securities Finance are not among Kweichow Moutai’s top 10 shareholders as of second quarter

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People visit the Kweichow Moutai booth at the China International Consumer Products Expo in Haikou, capital of south China’s Hainan province. Photo: Xinhua
Zhang Shidongin Shanghai

China’s state-backed funds are pulling out of Kweichow Moutai, adding to the woes of the nation’s biggest baijiu liquor maker, whose stock has lost more than 40 per cent from its peak five years ago.

Central Huijin Investment, a unit operated by China’s sovereign wealth fund, and China Securities Finance were not listed among Kweichow Moutai’s top 10 shareholders at the end of the second quarter, according to the distiller’s first-half report. Profits for the distiller fell by 1.95 per cent from a year ago in the period, marking the first decline in interim results since it was listed in Shanghai in 2001.

By the end of the first quarter, Central Huijin held 10.4 million shares of Kweichow Moutai, making it the fifth-largest shareholder, while China Securities Finance was the 10th-largest with a holding of 4.03 million, first-quarter results showed.

The two funds did not drop out of the top 10 because of stake increases by other investors, as a holding of 3.5 million shares was enough to rank among the company’s 10 biggest shareholders in the April-to-June period.

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