Latest news with #KweichowMoutai
South China Morning Post
01-07-2025
- Business
- South China Morning Post
China's crackdown on banquets and booze dims spending outlook, Goldman Sachs says
Institutional investors are concerned that a ban on alcohol at official meals in mainland China could hamper Beijing's efforts to boost spending and juice up the economy, according to Goldman Sachs. Advertisement The recent alcohol ban at official meals, together with stricter enforcement of frugality rules by the Chinese Communist Party (CCP), had made mutual funds, private equity funds and asset managers worry about whether consumer spending would rebound, Goldman Sachs analysts led by Lisheng Wang said in a report on Sunday. Investors also fretted about whether economic stimulus policies would be effectively implemented, the investment bank said. In May, Beijing reiterated eight points that are a key part of President Xi Jinping's campaign to combat corruption and uphold integrity within the party. In the newly revised Regulations on Practicing Thrift and Opposing Waste in Party and Government Organs, the CCP required its more than 100 million members to adopt a more frugal lifestyle: no banquets, booze or cigarettes. Last week, the Central Commission for Discipline Inspection, China's top anti-corruption agency, reported that more than 21,000 violations were investigated nationwide in May, including offences related to the dining and alcohol bans. The austerity measures likely further suppressed consumption of certain goods and services, said Jing Wang, an analyst at Nomura, in a note on Monday. Advertisement Shares in distiller Kweichow Moutai, a brand synonymous with lavish banquets, fell more than 6 per cent over the past month. Wuliangye, another large distiller, suffered a 4 per cent decline during the same period. Both brands have already been affected by the country's sluggish economy; last year, UBS Group lowered its ratings on Kweichow Moutai and other major Chinese liquor distillers.
Yahoo
30-06-2025
- Business
- Yahoo
The 30-Year-Old Fund Manager Beating the Market with Blind Boxes and Anime Stocks
A 30-year-old Chinese fund manager is quietly outperforming nearly 2,300 peersby doing the opposite of what most expected. Xie Tianyuan, who took over the Penghua Selected Return Flexible Allocation Mixed Fund in early 2024, didn't waste time ditching old-school holdings like baijiu giant Kweichow Moutai. In their place? Stocks favored by China's Gen Z, like Pop Mart (PMRTY), Mao Geping Cosmetics, and Chongqing Baiya. His $7 million fund is up 24% this year, placing it in the top 3% of its class, per East Money data. Xie's bet? That cultural shifts and emotional spending habits could unlock non-linear growth in an economy otherwise stuck in low gear. Warning! GuruFocus has detected 5 Warning Sign with PMRTY. He's not just following trendshe's living them. A lifelong anime fan with a desk full of Dragon Ball Z figurines, Xie seems uniquely wired to spot the next viral IP brand before it hits mainstream radar. Pop Mart alone makes up 10.5% of his portfolio, the max allowed, driven by the breakout success of its Labubu blind-box dolls. Other picks tied to pet culture, cosmetics, and even yellow sparkling wine are benefiting from the same Gen Z-fueled demand. The strategy? Target companies with visually compelling products, unconventional sales channels, and brands that tug on consumer emotionnot just logic. Still, cracks may be forming. Pop Mart slipped after a state-run newspaper criticized blind-box products, and Laopu Goldup over 2,000% since IPOis facing pressure after its lock-up expired. Xie admits some names are pricing in 35 years of growth ahead of schedule. But he's not backing off. The gains may look incomprehensible to some people, he says, but it's actually all rooted in earnings. To him, the bigger story is just beginningwhere even legacy companies may be forced to reinvent themselves or risk getting left behind. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News18
30-06-2025
- Business
- News18
Chinese Fund Manager, 30, Beats 97% Of Peers By Backing Labubu Dollmaker
Last Updated: Xie Tianyuan's fund returned 24 per cent so far this year, outperforming 97 per cent of nearly 2,300 mutual funds in China A young Chinese fund manager has shot to the top of investment rankings by backing Pop Mart, the maker of the wildly popular Labubu monster dolls. Xie Tianyuan's Penghua Selected Return Flexible Allocation Mixed Fund returned 24 per cent so far this year, outperforming 97 per cent of nearly 2,300 mutual funds in China, Bloomberg reported. After taking over the Shenzhen-based fund in 2024, Xie quickly shifted away from traditional holdings like liquor giant Kweichow Moutai, choosing instead to focus on trend-driven consumer brands that appeal to younger generations. He made Pop Mart his fund's biggest holding—10.5%, the maximum allowed. Xie's approach is rooted in what he calls 'emotional consumption," a rising trend among China's Gen Z shoppers who are drawn to visually appealing, fun products with personal meaning. His strategy also includes brands like Mao Geping Cosmetics—up 83% this year—pet food company Yantai China Pet Foods, and hygiene brand Chongqing Baiya, all popular with younger buyers. 'The line between what is considered 'old' and 'new' consumption is blurring, and more companies will join the new consumption pool once they realise that there's no future for them eking out a survival in their comfort zones. Even old trees can sprout new shoots," Xie said. Labubu dolls — small, fuzzy creatures with pointy teeth — have become a global hit. Sold in surprise 'blind boxes" for around $40, they've drawn huge crowds at stores in Asia, Europe, and North America. Celebrities like Rihanna and Cher have been seen with them, boosting their appeal even further. Pop Mart's rise reflects a wider wave of Chinese soft power, with cultural exports now gaining fans around the world. Despite concerns about China's global image, Labubu and other toys are reshaping perceptions and creating a new, trendier side of Chinese influence. The dolls have become so popular, they've sparked knock-offs and detailed online guides to spot fakes. Fans eagerly hunt for rare editions, and Pop Mart's success has inspired copycat brands known online as 'Lafufus". Location : China First Published:
The Star
14-06-2025
- Business
- The Star
China's top baijiu maker faces sobering reality as austerity trims profits
China's premier liquor distiller Kweichow Moutai – a brand that had, over decades, become synonymous with sumptuous feasts – is heeding a renewed mandate for austerity from Beijing, distancing its products from the extravagant hard-drinking lifestyle with which it had been linked in the public consciousness. Management at the company, valued at 1.86 trillion yuan (US$258.73 billion), has pledged to comply with strictures stressing thrift – guidelines that have helped to remove Moutai's expensive baijiu liquor from government banquets and narrowed the firm's profit margin further. Senior executives vowed to remain vigilant against the risks of corruption at a company meeting on Tuesday, where Moutai chairman Zhang Deqin invoked classic Chinese texts to argue the liquor must promote culture, health and harmony. 'With the baijiu , rites and traditions are upheld, the aged are nourished and joy is shared,' Zhang said, citing the Book of Rites and the Classic of Poetry, both of which date back centuries. Moutai's notoriously strong liquor – around 50 per cent alcohol by volume – has been the drink of choice for China's officials and executives since the early years of the Communist Party. After revolutionary leaders Mao Zedong and Zhou Enlai developed a taste for the spirit during their time in the southwestern province of Guizhou, the distinct white bottles have been given as official gifts to visiting dignitaries and become a fixture at lavish dinners. Zhang's remarks followed a March revival of orders to curtail inordinate expenditures on dining, showy official junkets and other entertainment. Most notably, President Xi Jinping has reiterated an eight-point code of conduct - first released in 2012 - to ensure officials do not hold costly receptions at the public's expense. As an SOE it must toe the party line on austerity, even at the cost of its sales The Central Commission for Discipline Inspection, the party's top anti-corruption organ, has republished up to 80 detailed rules related to the topic, including a ban on party and government dinners and meetings held at popular visitor attractions. 'Working meals should serve ordinary dishes in a home-cooking style. High-end dishes should be avoided, along with cigarettes and high-end liquor,' reads one rule. Moutai's leaders are likely to feel more pressure than most to demonstrate their fealty to official directives. Within the last decade, company chairmen Yuan Renguo and Gao Weidong were given separate prison sentences for bribery; Yuan, placed under investigation in 2019, died of a cerebral haemorrhage in 2023. These developments may spell lean times for Moutai. One of China's largest listed companies by market capitalisation, the company has earned a sizeable profit from the rich and powerful - and the heavy drinking of political cadres. 'Moutai's expensive baijiu and its political duty as a state-owned enterprise (SOE) are seen as at odds,' said Tang Dajie, a senior researcher with the China Enterprise Institute think tank in Beijing. 'As a profit-making company it certainly hopes more customers, including officials, can drink its products,' he added. 'But as an SOE it must toe the party line on austerity, even at the cost of its sales.' When Moutai held an annual shareholder reception in May, tables no longer groaned under rows of heavy white bottles. Instead, orange juice and other non-alcoholic drinks were served. Explaining the change, Moutai's Zhang said at the Tuesday meeting that as an SOE, the company must implement Beijing's decisions to combat waste. He went so far as to support a de facto baijiu ban at official functions and dinners being enforced in many localities, as well as gatherings held by other SOEs. The company also conducted a management overhaul this week, promoting younger executives to reform the firm's sales and marketing strategies. But Tang, the researcher, pointed out that Moutai cannot control how its baijiu is consumed, and its high prices are largely determined by the market. 'It has better taste and quality, and many people stock up on Moutai baijiu as an investment,' he said. 'Though Beijing's austerity push is correct, the government should not intervene in market activities.' The push to trim spending has come at an inopportune moment for Moutai, as muted economic activity has further quelled consumers' thirst for liquor. A May report from Soochow Securities said the company's years-long streak of double-digit revenue and profit growth will end in 2025. Accordingly, prices have been dropping since 2024. As of Wednesday, on several liquor trading platforms, the price of a bottle of 25-year-old Moutai had fallen below 2,000 yuan (US$278), half what had been demanded in more prosperous times. - SOUTH CHINA MORNING POST
South China Morning Post
13-06-2025
- Business
- South China Morning Post
EU sidelined by US-China showdown, Moutai faces sobering reality: SCMP daily highlights
Catch up on some of SCMP's biggest China stories of the day. If you would like to see more of our reporting, please consider subscribing Over two rounds of high-stakes talks on European soil, Europe has watched from the sidelines as the US and China tried to reach a truce that might stabilise the global trading system on which the continent is entirely reliant. The Chinese embassy in Israel warned its citizens on Friday morning to take safety precautions for potential attacks as Tehran considers a retaliation against Israeli strikes targeting its nuclear sites. Moutai, one of China's most popular liquor brands, is being put in a difficult position by rules limiting extravagant spending by officials. Photo: Reuters China's premier liquor distiller Kweichow Moutai – a brand that had, over decades, become synonymous with sumptuous feasts – is heeding a renewed mandate for austerity from Beijing, distancing its products from the extravagant hard-drinking lifestyle with which it had been linked in the public consciousness.
