China’s ‘national team’ ditches Kweichow Moutai in move that adds to valuation woes

China's state-backed funds are pulling out of Kweichow Moutai, the country's largest baijiu liquor maker. This move is adding to the company's valuation woes, as its stock has already lost over 40 per cent of its value from its peak five years ago. The loss of these key investors, including Central Huijin Investment and China Securities Finance, could further impact the company's profits, which have already fallen by 1.95 per cent. This development may also have broader implications for China's economy and markets, particularly in the context of the country's struggling liquor industry.

Why it matters

China's state-backed funds are pulling out of Kweichow Moutai, which could lead to a decrease in investor confidence. This move may cause the stock price to drop further, adding to the company's valuation woes.

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