Shares of liquor giant Kweichow Moutai surge on China recovery bets

Moutai posted a 17% jump in net profit during the first quarter despite the epidemic.

SHANGHAI: Kweichow Moutai, the iconic Chinese liquor giant, defied a global slump in alcohol demand by repeatedly hitting closing highs this week, as investors bet on a robust consumption recovery in China amid the pandemic.

Moutai's share price surge underlines the low correlation between Chinese and global equities amid the economically damaging coronavirus crisis. It also eases worries about financial health of Guizhou, the local government owner of the world's most valuable liquor maker.