Wuliangye Gets Regulatory Approval for Private Share Issue

Employees work in a brewing factory of Wuliangye Group Co. Ltd in Yibin, Sichuan province, on Dec. 17, 2011. Photo: Visual China

(Beijing) — Chinese liquor maker Wuliangye Yibin Co. Ltd. said it has secured regulatory approval on Thursday to issue additional shares worth 1.8 billion yuan ($261 million) to employees and distributors as it attempts to dilute government stakes in government-backed entities.

Wuliangye is China's second-biggest maker of baijiu, a fiery local brew packed with an acrid punch. Its sales had recovered this year from the industry hangover that followed President Xi Jinping's crackdown on luxury spending among Chinese officials launched in 2012 — a policy that hit high-end liquor producers hard.