Spirits rise as baijiu shares rally on Lunar New Year demand

Chinese liquor stocks jumped on Thursday ahead of Lunar New Year, with retailers reportedly building inventories of spirits typically consumed at family reunions and corporate banquets.Shares of Kweichow Moutai – China’s best-known baijiu maker and the most valuable stock on the mainland market – climbed more than 9 per cent in afternoon trading to 1,445 yuan, their highest level in over a month.The stock closed the session 8.6 per cent higher at 1,437.72 yuan.Smaller peers also rallied, with Jinhui Liquor and Jiugui Liquor both rising by their 10 per cent daily limits to close at 21.54 yuan and 56.85 yuan, respectively.“The main driver was a sharp rise in Kweichow Moutai, the sector bellwether, which lifted other liquor names,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International. “Moutai’s wholesale prices have been hitting new highs recently, pointing to strong industry conditions, particularly as demand typically picks up ahead of the Lunar New Year.”Data from liquor price-tracking platform Jinri Jiujia showed that this year’s Flying Fairy – a core Moutai product line – was selling at about 1,610 yuan (US$231) per bottle, up roughly 5 per cent from a week earlier.