Christmas Eve 2020 is destined to be a sleepless night for small and medium-sized shareholders of Guizhou Maotai Group, a liquor producer in China. According to a notice issued by Maotai Group on December 24, 2020, it intends to transfer its 50,240,000 shares (4.00% of the Company’s total share capital) to Guizhou State-owned Capital Operations Co. Ltd, through a non-reimbursable transfer. According to the closing price of the day, the free transfer is worth 90 billion yuan RMB.
Transactions like this reflects the Chinese official end of the year’s ‘gift’ habit. Officials from the subordinate enterprises transfers some wealth to the superior unit, not only to keep their position within the enterprise, but also to ‘help’ their leadership solve financial difficulties, so that they can promoted later.
This non-reimbursable share transfer is equivalent to vanquishing 90 billion yuan RMB from Maotai shareholders, many of whom are ordinary Chinese citizens who purchase shares using their hard-earned money. The need for this transfer into a state-owned enterprise, which will no doubt go into the coffer of the Chinese Communist government, hinted at the enormous financial pressure faced by the Chinese government.
Guizhou Maotai, as the highest-valued stock in China, is simply a tool used to harvest the money from the shareholders and convey benefits to the elite.
Most of the leading stocks in the U.S. stock market are high-tech companies such as Apple, Microsoft, Amazon and Google. These high-tech companies have truly led the way in technological advancement. The comparison to Guizhou Maotai is interesting, as the latter has simply encouraged a culture of alcoholism.
Guizhou Maotai’s cutting-edge advantage comes from its pure grain brewing process. According to the relevant information disclosed, each catty of Maotai liquor is brewed using five catties of grains. The Communist Party of China spends about 20 million tons of grain a year for liquor making, about the same as the shortfall of grain across the entire country. In the absence of large-scale grain harvests, China has to rely on imported grain to sustain its domestic liquor making industry.
In 2020, China’s food security has come under great threat: severe floods, stagnant agricultural production caused by the Covid-19 (CCP virus) outbreak, depletion of foreign currencies and reduced food imports due to other countries placing restrictions on food exports. While China appears to have a serious food shortage situation, Giozhou Maotai’s production and its stock prices have reached new heights.
A glass for liquor that corrupted CCP officials consumed is produced using grains that can feed a family of three a day. The Moutai liquor are indeed brewed with blood and tears by the people of the Communist Party of China.
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