Analysis | Mao Zedong’s tipple and G-bits fight it out as China’s priciest stock
Kweichow Moutai, producer of the fiery liquor that was Chairman Mao’s preferred tipple, is the priciest among China’s 3,100 stocks, trading at almost 400 yuan per share
Chinese liquor giant Kweichow Moutai and gaming service provider G-bits Network Technology are in a race to be crowned the most expensive stocks on China’s equity markets.
After being briefly unseated by G-bits during intraday trading on March 14, Kweichow Moutai has regained its lead as the priciest stock on the Shanghai and Shenzhen stock exchanges.
The nation’s biggest traditional liquor, or baijiu, maker is now 12 per cent more expensive than G-bits, being the only two stocks trading above 300 yuan among China’s 3,100-plus publicly traded companies.
Investors’ enthusiasm for the two highlights China’s ambition to shift its economy, already the world’s second largest, to one that relies more on consumption and service industries as growth engines, rather than credit-fuelled investment.
Investors seem to favour Moutai due to the strong and growing demand for its products.
