China’s equity market finally got its first 1,000 yuan stock — though only briefly.
Liquor giant Kweichow Moutai Co. reached a record 1,001 yuan ($145) in intraday trading Thursday after advancing as much as 2.2%. The stock pared its gain to close up 1.7% at 996.35 yuan. The baijiu producer’s shares have surged 69% this year.
Reaching that milestone at a time when markets are hobbled by uncertainties in advance of the Group of 20 meeting illustrates the continued flight to quality, according to Chen Jihao, fund manager at Beijing Gaoxi Asset Management Co., who has held on to Moutai shares for more than a decade.
"That it’s happening now shows how the ‘smart funds’ are favoring the blue chips," Chen said.
Analysts tracked by Bloomberg earlier forecast that the stock would hit 1,000 yuan this year. China International Capital Corp. analyst Tingzhi Xing projects the shares will reach 1,250 yuan within the next 12 months.