Kweichow Moutai’s 2026 Market Activity and Strategic Moves
Kweichow Moutai Co., Ltd. (600519.HK), the flagship producer of China’s premium baijiu, continued to dominate headlines in early‑January 2026 as it advanced a new share‑repurchase programme, refreshed its product line, and faced unprecedented price volatility on its flagship “Feitian” series. The company’s shares closed the day before the Chinese New Year at 1,426 CNY, up 3.54 % from the prior close, reflecting broad market enthusiasm for the sector.
1. Share‑Repurchase Programme
On 4 January 2026, the board announced that it had completed the purchase of 87,059 shares through a consolidated auction on 31 December 2025, representing 0.007 % of the total shares issued. The price range of the transaction was 1,385.76 CNY (high) to 1,377.22 CNY (low), with a total outlay of approximately 120 million CNY.
The repurchase scheme, disclosed on 6 November 2025, is slated to run for six months from board approval. The company plans to spend between 1.5 billion CNY and 3 billion CNY on the buy‑back, with the primary purpose of reducing registered capital. The repurchase is expected to strengthen earnings per share and provide a buffer against market volatility, aligning with the company’s long‑term shareholder‑value strategy.
2. Product Innovation and the “Horse‑Year” Edition
On 6 January, Kweichow Moutai launched the Moutai “Horse‑Year” (Ma‑Nian) Baijiu, a commemorative edition tied to the Chinese zodiac. The standard 1,899 CNY bottle quickly attracted scalpers, who raised the price to 3,000 CNY on secondary markets. This frenzy underscores the brand’s enduring scarcity appeal and the high demand for limited‑edition releases.
The launch follows the company’s broader marketing overhaul, announced at the National Distributor Conference on 28 December 2025. The event highlighted a shift toward consumer‑centric, market‑oriented distribution, a response to a period of muted demand amid a softening consumer price index and industrial profits.
3. iMoutai App and Price Pressure on Feitian
On 1 January, the newly launched iMoutai app began selling 500 ml Feitian Moutai at an official price of 1,499 CNY. The first five days of sales were described as “秒光” (sold out in seconds) on the platform, indicating strong buyer enthusiasm.
However, third‑party price monitoring revealed that wholesale prices for Feitian dipped below the official 1,499 CNY threshold within the first week, with a cumulative decline of over 100 CNY. Dealers reported a wave of inventory offloading, raising concerns that the company’s long‑standing premium pricing model could be under strain. Analysts warn that sustained price erosion may erode profit margins and challenge the brand’s positioning as the undisputed premium spirit.
4. Market Reception and Institutional Flow
The day after the New Year, the Shanghai Composite Index reclaimed the 4,000‑point mark, up 1.38 %, while the Shanghai‑Shenzhen A‑share market recorded 25.7 trillion CNY in turnover—an increase of 5.0 trillion CNY from the previous day. Within this backdrop, the A‑share “Red‑Dividend Quality” ETF attracted a net inflow of 17 million CNY, signalling continued confidence in high‑quality, dividend‑paying stocks.
Kweichow Moutai led the white‑wine sector’s gains, posting a 3.54 % rise to 1,426 CNY. Other players such as Wuliangye, Shanxi Fen, and Luzhou Laojiao also registered gains, but none matched Moutai’s momentum. Institutional analysts noted that the stock’s 19.83 price‑earnings ratio, while high, remains justified by the company’s robust cash flows and brand dominance.
In terms of cross‑border capital flows, North‑bound trading on 5 January saw Moutai as the third highest‑traded Shanghai‑listed stock, with a volume of 32.39 billion CNY. This inflow underscores the brand’s attractiveness to foreign investors seeking exposure to China’s luxury consumer segment.
5. Strategic Outlook
Kweichow Moutai’s dual strategy—bolstering shareholder value through a disciplined share‑repurchase programme and revitalising its product portfolio—positions it well for the coming year. The company’s market‑oriented distribution plan, coupled with the high demand for limited‑edition releases, suggests that it will continue to command premium pricing in the face of competitive pressures. Nonetheless, the rapid price erosion observed on the Feitian line signals the need for careful inventory and channel management to preserve the brand’s perceived exclusivity.
In sum, early‑January 2026 highlighted Kweichow Moutai’s resilience as a premium spirit, its proactive approach to shareholder returns, and its adaptive marketing strategies—all set against a backdrop of volatile retail pricing and strong institutional interest.
