Business News

CCTV Script 11/01/18

— This is the script of CNBC's news report for China's CCTV on January 11, Thursday.

For the past year, China's Kweichow Moutai added more than 500 billion yuan to its market cap front, now reaching 987 billion yuan, which is about 151 billion USD.

It has topped LVMH in market capitalization, which stood at 149 billion US on Tuesday, as the most valuable stock on Bloomberg Intelligence's Global Luxury Goods Top Peers Index.

Therefore, this marks another win for the Baijiu producer after it already became the world's most valuable liquor brand, overtaking Diageo last year.

Among the S&P Global Luxury Index, which comprised of 80 of the largest publicly-traded companies engaged in the production or distribution of luxury goods, LVMH has been the top in terms of market cap.

The luxury conglomerate, which owns brands including Hennessy brandy, Louis Vuitton, Dior and Givenchy and so on, has been enjoying the crown of being the world's largest luxury group.

But now, as many analysts and institutions view Moutai as a luxury retailer, the Chinese white wine company surpassed LVMH on Bloomberg's global luxury goods top peers index.

Share prices of LVMH declined overnight in Europe, down 1.67%, lowering its market cap to about 123.2 billion USD.

But when compare Moutai with LVMH, one thing worth pointing out is that even though LVMH's earnings are far higher than Moutai, but the gap on profits are not that narrow - with LVMH's profits standing around 30 billion yuan in 2016 and Moutai at 20 billion.

Analysts say that with China's consumption power continues to strengthen, Moutai's retail price as well as stock prices will likely be well supported by market demand.

CNBC's Qian Chen, reporting from Singapore.