Chart of the day: Foreigners rush to sell China liquor stocks
Foreign investors seem to have escaped unscathed from the recent sell-off in the shares of China’s top distillers of fierce liquor. In October, they sold a net 1.97 billion yuan (US$297.1 million) worth of Kweichow Moutai shares through the Stock Connect, the most for a single month this year, according to data from Hong Kong Exchanges and Clearing. It also marked the third consecutive month of net foreign selling in the shares of its main rival, Wuliangye Yibin. Last week, a Xinhua article said shares in Kweichow Moutai were rising too rapidly this year, which immediately sent them on a downward spiral. At Monday’s close, the stock has lost 5.6 per cent from the record high it set on Thursday after more than doubling this year, while Wuliangye Yibin has dropped 4.3 per cent from its all-time high.