BUSINESS

Chinese Liquor Stocks Surge as Moutai Rebounds on Holiday Demand

Published: Jan. 30, 2026 12:18 a.m. GMT+8

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Inventory shortages have pushed the wholesale price for a box of 2025 Feitian Moutai to 1,620 yuan ($233) as of Jan. 29, up from 1,600 yuan the previous day. Photo: VCG

Chinese liquor stocks rallied sharply Thursday, led by industry heavyweight Kweichow Moutai Co. Ltd., as recovering wholesale prices and robust pre-Lunar New Year demand reignited investor confidence in a sector that had been in decline for more than a year.

Shares of Kweichow Moutai surged 8.61%, while the CSI Liquor Index climbed 9.79% to close at 9,149.9. Several prominent distillers — including Wuliangye Yibin Co. Ltd., Luzhou Laojiao Co. Ltd., and Shanxi Xinghuacun Fen Wine Factory Co. Ltd. — hit their daily trading limit of 10%.

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Chinese liquor stocks surged, with Kweichow Moutai up 8.61% and the CSI Liquor Index up 9.79%, driven by recovering wholesale prices and strong pre-Lunar New Year demand.
Kweichow Moutai's flagship Feitian label saw wholesale prices rise to 1,620 yuan per box; distributors' sales reached 25-30% of annual targets, with volumes up over 10% year-to-date.
Industry reforms include dynamic pricing and direct-to-consumer channels; structural changes are prompting lower-tier exits and mid-tier price moderation.

AI generated, for reference only

Who’s Who

Kweichow Moutai Co. Ltd.: Kweichow Moutai Co. Ltd. is a leading Chinese liquor company whose shares recently surged after a period of decline. The company's flagship Feitian label has seen a rebound in wholesale prices due to strong demand and inventory shortages. Kweichow Moutai has also implemented pricing reforms, offering its 53-degree Feitian Moutai directly to consumers and adopting a dynamic market-based pricing framework.

Wuliangye Yibin Co. Ltd.: Wuliangye Yibin Co. Ltd. is a prominent distiller in the Chinese liquor sector. On Thursday, its shares, along with other distillers like Luzhou Laojiao and Shanxi Xinghuacun Fen Wine Factory, hit their daily trading limit of 10%, indicating a significant rally in stock value. This surge reflects rekindled investor confidence in the sector.

Luzhou Laojiao Co. Ltd.: Luzhou Laojiao Co. Ltd. is a prominent Chinese distiller. Its shares experienced a significant rally, hitting their daily trading limit of 10% on Thursday. This surge was part of a broader recovery in Chinese liquor stocks, driven by renewed investor confidence stemming from recovering wholesale prices and robust pre-Lunar New Year demand.

Shanxi Xinghuacun Fen Wine Factory Co. Ltd.: Shanxi Xinghuacun Fen Wine Factory Co. Ltd. is a prominent distiller in China's liquor industry. On Thursday, its shares, along with other major distillers, hit their daily trading limit of 10%. This surge contributed to a broader rally in Chinese liquor stocks, driven by recovering wholesale prices and strong pre-Lunar New Year demand, signaling a positive shift for the sector.

China Merchants Securities: China Merchants Securities, a financial institution, observed that mutual fund allocations to liquor stocks had dropped to a mere 3.5%. This indicated a potential buying opportunity for investors due to the resilience in liquor stock pricing. This information contributed to analysts' opinions that earlier market expectations for liquor stocks were overly pessimistic.

Citic Securities: Citic Securities mentioned in a research report that the liquor industry is experiencing significant structural changes in 2026. This includes top-tier distillers focusing on direct-to-consumer sales, mid-tier companies adjusting prices for sales volume, and lower-tier firms exiting the market due to excess inventory.

AI generated, for reference only

What Happened When

October 2024：: The Chinese liquor sector entered a downturn that lasted for more than a year.

Jan. 1, 2026：: Kweichow Moutai began offering its 53-degree Feitian Moutai directly to consumers through its ‘iMoutai’ app at 1,499 yuan per bottle.

Jan. 12, 2026：: Kweichow Moutai's board approved a market-based pricing framework, implementing a dynamic mechanism to adjust retail prices according to market conditions.