Kweichow Moutai Briefly Becomes China's First 1,000-Yuan Stock

(Bloomberg) --

China’s equity market finally got its first 1,000 yuan stock -- though only briefly.

Liquor giant Kweichow Moutai Co. reached a record 1,001 yuan ($145) in intraday trading on Thursday, after advancing as much as 2.2%. The stock pared its gain to close up 1.7% at 996.35 yuan. The baijiu producer’s shares have rallied 69% this year.

Reaching that milestone at a time when markets are hobbled by uncertainties ahead of the Group of 20 meeting illustrates the continued flight to quality, according to Chen Jihao, fund manager at Beijing Gaoxi Asset Management Co., who has held on to Moutai shares for more than a decade.

"It has only ever been a matter of time. That it’s happening now shows how the ‘smart funds’ are favoring the blue chips," Chen said.

Analysts tracked by Bloomberg had earlier forecast that the stock would hit the 1,000-yuan mark this year. China International Capital Corp. analyst Tingzhi Xing expects the shares to reach a target price of 1,250 yuan within the next 12 months.

To contact Bloomberg News staff for this story: April Ma in Beijing at ama112@bloomberg.net

To contact the editors responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net, Magdalene Fung, Philip Glamann

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With assistance from Bloomberg