-
Important news
-
News
-
Shenzhen
-
China
-
World
-
Opinion
-
Sports
-
Kaleidoscope
-
Photos
-
Business
-
Markets
-
Business/Markets
-
World Economy
-
Speak Shenzhen
-
Health
-
Leisure
-
Culture
-
Travel
-
Entertainment
-
Digital Paper
-
In-Depth
-
Weekend
-
Newsmaker
-
Lifestyle
-
Diversions
-
Movies
-
Hotels and Food
-
Special Report
-
Yes Teens!
-
News Picks
-
Tech and Science
-
Glamour
-
Campus
-
Budding Writers
-
Fun
-
Qianhai
-
Advertorial
-
CHTF Special
-
Futian Today
在线翻译:
szdaily -> Markets -> 
Firm’s name change gets taste of Moutai’s brand power
    2021-02-22  08:53    Shenzhen Daily

SHARES of a Chinese power supplier surged last week after its board proposed inserting “Moutai” into its company name, in an apparent attempt to link it with the world’s most valuable liquor brand.

The practice, and the market reaction, highlight how such opportunism can be effective in a market heavily influenced by retail investors.

Xinyang Maojian Group Ltd.’s shares jumped as much as 48 percent last week in Hong Kong after the company, which also sells wine, proposed changing its name to China Dragon Moutai Group Ltd. to project “a more appropriate image and identity.”

The new name evokes similarities to Shanghai-listed Kweichow Moutai Co., the world’s top liquor brand by market cap, making Maojian the latest example of a Chinese company boosting its share price without having to change business fundamentals.

The renaming, which still requires shareholders’ approval, highlights a long-running practice in China where some companies change names to capitalize on market fads.

In 2015, when fintech and peer-to-peer lending was hot in China, a Shanghai-listed commodities trading firm saw its share price surge after it renamed itself P2P Financial Information Service Co.

That same year, fireworks maker Panda Fireworks announced it would change its name to Panda Financial Holding Corp., triggering queries from the Shanghai Stock Exchange.

Maojian’s renaming proposal appears well-timed.

Moutai’s shares have jumped more than 20 percent so far this year to record levels after 2020’s 69 percent surge, fuelled by analyst re-ratings and ample market liquidity.

Signs of a supply shortage during the Lunar New Year national holiday further boosted sentiment.

Terrance Liu, analyst at brokerage CLSA, last week upgraded Moutai to outperform and raised its price target to 2,935 yuan, roughly 19 percent higher than the current level, citing “an increasing likelihood of price hikes and its more defensive positioning.” (SD-Agencies)

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010-2020, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@126.com