Kweichow Moutai’s price increase was not enough to pull baijiu, a Chinese grain liquor, out of its slump.
As of market close on July 21, Kweichow Moutai’s share price had fallen to RMB 1,308 (USD 193) per share. Wind’s Baijiu Index also dropped 1.47% to 2,926.9.
Just one trading day earlier, the entire baijiu sector had opened higher and kept rising on the back of a price increase for Feitian Moutai. Gujing Distillery hit its daily limit, while several distillers, including Kweichow Moutai and Luzhou Laojiao, rose more than 5%.
Within a day, market sentiment cooled. After digesting the positive news from the price increase, investors began reassessing the structural problems facing the baijiu industry.
The price increase took effect on July 18.
