In recent days, the A-share liquor sector has been in a slump. On June 13th, the stock price of Guizhou Maotai hit a new low in its recent year and a half.
According to reports from “The Beijing News” and Jiemian News, Guizhou Maotai’s stock price has been mostly on a downward trend in June. As of the close on the 13th, Guizhou Maotai closed at 1,555.01 yuan per share, with a daily decline of 1.06%, and a market value of approximately 1.95 trillion yuan (RMB), falling below 2 trillion yuan.
Data shows that from June 1st to the 13th, Guizhou Maotai’s stock price closed lower on 6 trading days and higher on 2 trading days; its total market value evaporated approximately 117.379 billion yuan during this period of 13 days.
Furthermore, the closing market value on June 13th was also the lowest since the beginning of 2024 for Guizhou Maotai.
Since the beginning of the year, the wholesale price of Feitian Maotai has dropped from around 2,700 yuan per bottle to around 2,400 yuan per bottle.
It’s been reported that recently, there has been a resurgence in the activities of scalpers. Several sizable scalping groups have fled in recent times, including Guangzhou Guoyuan, Hangzhou Desheng, and others. The individuals who have fled were previously part of various scalping groups, where they purchased high-priced products such as well-known liquors and branded phones from different channels, and sold them at a profit to the buyers in the group.
Financial reports indicate that the entire liquor sector is currently in a downturn. Compared to the peak stock prices earlier this year, the market value of Guizhou Maotai has evaporated by about 280 billion yuan. Apart from Guizhou Maotai, Wuliangye’s market value has decreased by 97.9 billion yuan, while Shanxi Fenjiu, Luzhou Laojiao, and Yanghe shares have each lost 55.2 billion yuan, 61.5 billion yuan, and 14.9 billion yuan respectively.
The northbound funds have also been selling, with post-market data showing net sales of 600 million yuan for Wuliangye and 447 million yuan for Guizhou Maotai on the 13th.
In a broader perspective, with the slowdown in economic growth, consumer purchasing power has shown differentiation, and the golden age of real estate is no longer returnable, leading to a significant reduction in the application scenarios for high-end liquor.
Additionally, reports indicate that the decline in Maotai’s stock price and wholesale price coincides with the Chinese Communist Party’s crackdown on “special supply alcohol.”
The official Chinese media “People’s Daily” reported on June 9 that in the three months since the Public Security Bureau began cracking down on the production and sale of “special supply alcohol” and “dedicated supply alcohol” under the guise of party and government institutions, the military and others, more than 318,000 illegal bottles of “special supply alcohol” have been confiscated.
Maotai liquor was once seen by the public as a symbol of corruption in the Chinese officialdom, serving as “special supply alcohol” for various military regions, military systems, and institutions, often used in official gifting and bribery. It is reported that 60% of Maotai’s total sales volume is supplied to the government and the military annually.