In an attempt to curb frivolous government spending, Beijing announced that it plans to ban government officials from spending public funds on cigarettes and alcohol, according to the Jing Daily.This announcement comes on the heels of a similar declaration of intent to ban officials from buying luxury cars produced outside of China, and after public outrage that spread when Communist representatives were photographed wearing pricey designer labels at the recent National People’s Congress.
China has threatened to ban booze bought with public money before, but after the announcement domestic spirits brands shares plummeted.
China Kweichow Moutai Distillery, a high-end Chinese label, felt the biggest ripple, with stocks dropping 6.5 per cent in Shanghai, its biggest decline since January, Jing Daily reported.
The brand, which Hurun Report recently placed on a list of the most popular luxury brands in China, has long tried to distance itself from the “luxury” category, but without much success. It’s especially popular among government officials.
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