In an effort to curb growing frustration with government corruption and the growing rich poor gap, the Chinese government has recently banned advertisements for luxury products on television and radio.
Chinese authorities’ crackdown on ‘gift giving’ will create further pain for wine and spirits companies prominent in the world’s second largest economy, analysts say.
Shares in Chinese white spirits companies have been hammered in recent months, after a crackdown on extravagant banquets for senior military officers at the end of last year first put pressure on the sector. Shares in white spirits company Kweichou Moutai, a well-known Chinese brand, have plummeted 27 percent over the past six months, while the shares of rival Jiugui Liquor have almost halved in value over the same period. Read more at CNBC.