Portfolio Manager, Owens Huang provides commentary on Moutai, a style of the Chinese alcoholic spirit baijiu, made from the cereal crop sorghum using traditional Chinese distilling techniques. The most famous brand of Moutai is Kweichow Moutai, produced by Chinese state-owned enterprise Kweichow Moutai Co. Ltd. Kweichow Moutai (or simply “Moutai” as we will refer to it) is seen as a lubricant for economic development in China and even a barometer for Chinese infrastructure spending, because Moutai is primarily consumed during important business meetings between enterprises and the government, typically at dining tables. Consequently, Moutai’s stock price is viewed as a reliable indicator of China’s infrastructure, factory, and property investment, often leading infrastructure investment by one to two quarters. Read his white paper here.
