Feitian Moutai Price Drop Triggers Billion-Dollar Selloff in Liquor Stocks

Falling retail prices of Feitian Moutai have triggered a selloff of Chinese liquor stocks. Industry giant Kweichow Moutai Co. Ltd.’s share price dropped more than 6% over the past five trading days, wiping out more than 80 billion yuan ($1.1 billion) market value of the most valuable company in China.

CSI Liquor Index slid 1.82% Tuesday, down 5.63% from its recent high on April 3. Shares of fellow first-tier distillers Wuliangye fell 6.34% during the period, Luzhou Laojiao Co. Ltd. down 8.45%, and Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. down 4.73%.