EM Exposure A Major Impetus Behind Moutai And Wuliangye's Outperformance

The relatively strong emerging market exposure of the major alcoholic drink players suggests room for continued outperformance of the alcohol index in the near term. Reflecting strong investor confidence in the Chinese consumer growth story, Chinese spirits companies Kweichow Moutai and Wuliangye Yibin have, unsurprisingly, performed strongly over the past 12 months. However, we believe that much of the investor optimism has already been priced in and are wary of going bullish Moutai and Wuliangye Yibin in the near term.

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