Wine-trading Web site uncorks new opportunity for SAR investors

Hong Kong investors looking for a change from trading in traditional scrip can now buy and sell their favourite tipple on a new kind of exchange.

Uvine.com offers wine buffs the chance to make a killing on claret, or bomb on beaujolais, through its online stock exchange for wine. Launched in May, the London-based exchange allows traders to monitor prices, check the market value of their portfolio, and buy and sell fine wines.

Chief executive Andrew Halstead said the company guarantees every trade, and wine for sale undergoes rigorous quality checks such as storage history and even tastings. 'We need to know that buyers get delivered a good case of wine,' he said.

Uvine, which boasts former England Test cricketer David Gower as public relations head, will store most wines for sale at a bonded warehouse in London.

The company charges 3.5 per cent commission to both sides of every trade.

Uvine, which is backed by United States venture capital firm Moore Capital, has even persuaded Frank Homann, head of global derivatives trading at Donald, Lufkin & Jenrette, to help build a futures market for fine wine.

A recent government-sponsored study into the feasibility of the SAR becoming the region's wine-distribution hub revealed total wine consumption in Asia is expected to reach US$2.2 billion over the next six years.