China's local governments are deep in debt. Sometimes alcohol can help.
, has become a financial lifeline for the underdeveloped southern region where it is based.
Kweichow Moutai Co . has generated billions of dollars for the local government of Guizhou, thanks in large part to the company’s soaring stock price. The company’s high-end versions of baijiu, a potent spirit made by fermenting grains such as sorghum, have become status symbols in China. That has turned the state-backed, Shanghai-listed company into by far the world’s most valuable distiller—worth some $326 billion, according to FactSet.
The company’s rise has been a gift for the province of Guizhou, which is Moutai’s majority shareholder. Many of China’s other big state-owned enterprises, including banks, telecoms, airlines and oil companies, are owned directly by the central government, not local authorities. Moutai is a major local taxpayer. Aside from that, much of the support has come through Moutai’s unlisted, state-owned parent. Enriched by Moutai’s runaway success, this group has been able to invest in local infrastructure such as airports, railways and highways. It has also given company shares to another local government entity, which in turn has sold some of these for cash.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Biden Calls For $100 Cash Payments To Newly Vaccinated AmericansIt is part of the U.S. government’s push to get more Americans vaccinated.
Leer más »
X Factor rich list - how stars from One Direction to Jedward splashed their cashThe X Factor launched the careers of many pop stars during its 17 years on air - boosting their bank balances along the way. We take a look at how some of the show's success stories spent their earnings.
Leer más »
Trump Has $102 Million in Political Cash as GOP Eyes Retaking CongressFormer President Donald Trump already has $102 million in political cash that he can wield as the GOP eyes retaking majorities in Congress next year, according to a Trump aide.
Leer más »
Apple Floats Above China Technology Crackdown — For NowNo big U.S. tech company is more exposed to China’s political climate than Apple. But its adroit management of the Chinese market is insulating it from the turmoil gripping the country’s own tech stocks.
Leer más »
Amid extreme weather, China avoids mention of climate changeChina’s climate plans, though bold on paper, are not urgent enough. The world needs Chinese carbon emissions to peak years earlier than 2030 to avoid catastrophic warming
Leer más »
US-Philippines alliance is back to counter ChinaThe defence agreement between Washington and Manila is a key component of their decades-long alliance and it is also seen as a bulwark against China's growing clout in the South China Sea.
Leer más »