SHARES in the world’s most valuable distiller, Shanghai-listed Kweichow Moutai, tumbled 4.01 percent Friday after domestic media questioned whether the index heavyweight’s skyrocketing stock price had risen too much, posing a risk to the overall market.

Kweichow Moutai, which makes baijiu, a fiery grain alcohol popular in China, has seen its share price double this year on good earnings and bullish market sentiment.

Shares climbed more than 4 percent Thursday to a record high close of 719.11 yuan (US$108.4), giving the firm a market capitalization of more than 900 billion yuan, making it China’s eighth most valuable listed company.

But they fell as much as 5.7 percent Friday, closing 4.01 percent lower at 690.25 yuan, after Xinhua published a piece saying the company’s soaring stock price was not justified by its earnings.

“It is as if Moutai is not selling liquor, but golden water,” said the Xinhua article.

The report, issued late Thursday, blamed “shortsighted speculation” for the stock’s rise.

Moutai broadly concurred in a statement Friday morning that likely added to the shares’ fall.

The statement said some stock analysts had issued “overly-high target prices and valuations” that the company did not agree with.

(SD-Agencies)