China liquor / Dukang

China liquor / Dukang: Kweichow Moutai dropped as much 4.7% to Rmb 190.80 to a 9-month low, leading a decline in Chinese liquor companies for a second day as losses at a distributor fueled concern that demand for high-end alcohol will continue to weaken. Wuliangye Yibin, the second largest, dropped as much as 4.1%. Silver Base, a Chinese distributor of high-end Wuliangye liquors and Fen Wine, fell as much as 1.3% in Hong Kong, following a 4.9% slump yday. Silver Base, which reported on Dec 2 a six-month loss of HK$194.5 m, has shut two stores to alleviate rental pressure, the Standard newspaper reported today. Investors are selling shares in Chinese liquor makers on expectations baijiu demand will remain weak going forward, as economic and business activity moderates, Sinopac Securities said. “Demand and prices in the baijiu sector has been on a downward trend since the start of the year and it is hard to see a turnaround in the near future. Distributors are also holding higher inventories, and it will take some time for them to get rid of this stock. Spore-listed peer Dukang is -1.6% at $0.31.