{
  "id": 1594608,
  "title": "China’s ‘national team’ ditches Kweichow Moutai in move that adds to valuation woes",
  "url": "https://urgent.news/2026/08/18/chinas-national-team-ditches-kweichow-moutai-in-move-that-adds-to",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-18T00:00:13.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/china-business/article/3364299/chinas-national-team-ditches-kweichow-moutai-move-adds-valuation-woes"
  },
  "original_language": "en",
  "account": "State-backed funds in China are divesting from Kweichow Moutai, the nation's biggest baijiu liquor maker, amid declining fortunes that have seen its stock plummet more than 40 percent since its peak five years ago. Central Huijin Investment, operated by China's sovereign wealth fund, and China Securities Finance, a government-backed entity, are no longer among Kweichow Moutai's top 10 shareholders as of the second quarter, according to the company's first-half report. Profits for the distiller declined by 1.95 percent year-over-year in the period, marking the first drop in interim results since the company's 2001 listing in Shanghai. Central Huijin owned 10.4 million shares, ranking as the fifth-largest shareholder, while China Securities Finance held 4.03 million shares, making it the 10th-largest holder. The two funds did not drop out of the top 10 due to stake increases by other investors, as a 3.5 million share holding is enough to qualify for the list. The unwinding signals that some of China's most influential investors are becoming more cautious about Kweichow Moutai and the baijiu industry, once seen as favored investments. The sector has been struggling in the post-Covid era, facing challenges from the government's anti-corruption campaign, a weakening job market, and changing consumption habits among younger generations. Both Central Huijin and China Securities Finance, dubbed members of China's \"national team,\" are state-backed investors that first stepped in to stabilize the stock market in 2015. Foreign investors also reduced their holdings in Kweichow Moutai during the second quarter, selling 5.02 million shares through the Stock Connect program. Despite this, Kweichow Moutai's shares still fell 45 percent from their all-time high in February 2021, currently valued at 1.6 trillion yuan.",
  "summary": "China’s state-backed funds are pulling out of Kweichow Moutai, adding to the woes of the nation’s biggest baijiu liquor maker whose stock has lost more than 40 per cent from its peak five years ago. Central Huijin Investment, a unit operated by China’s sovereign wealth fund, and China Securities Finance were not listed among Kweichow Moutai’s top 10 shareholders at the end of the second quarter,…",
  "key_points": [
    "State-backed funds divest from Kweichow Moutai amid declining fortunes.",
    "Central Huijin and China Securities Finance no longer top 10 shareholders.",
    "Baijiu industry faces challenges from government, weakening job market."
  ],
  "editors_take": "The divestment by China's state-backed funds from Kweichow Moutai signals growing caution among influential investors about the baijiu industry's prospects, amid changing consumption habits and government policies.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Techmeme",
        "title": "Sources: Google has told suppliers it plans to move all Pixel phone, smartwatch, and wireless earbud manufacturing out of China in 2027 amid US-China tensions (Lauly Li/Nikkei Asia)",
        "url": "https://urgent.news/2026/08/18/sources-google-has-told-suppliers-it-plans-to-move-all-pixel-phone",
        "published": "2026-08-18T02:50:01.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}