Financial Market

CHINA LIQUOR GROUP has started to issue ABS financial products for Chinese Baijiu, will bring the Baijiu industry into a new field

SINGAPORE, May 25, 2022 /PRNewswire/ — On May 22, Singapore has set up the first overseas investment fund with Chinese Baijiu industry as the targeted industry investment, which will be invested in China Liquor Limited (CHINA LIQUOR).

China Liquor Limited (CHINA LIQUOR), established in Singapore, is an international professional operator of alcoholic beverages. Presently, it has 419 registered shareholders. The paid in capital of the company is 450 million SGD, and the book net current assets are about 460 million SGD. The core business of China Liquor Ltd. is wholesale and retail. As a central purchaser, it purchases liquor products from global manufacturers. By 2022, the company has invested in and established 13 wholly-owned subsidiaries with wholesale as the main business model in China and 19 holding, equity participation, shareholding and cooperative sales companies with wholesale and retail as the main business model in the world.

Ms. Chenhan Xiaoying, founder of Jingying international group and Executive Director of CHINA LIQUOR, said that this is the first ABS supported by Chinese Baijiu products by China liquor. The Fund established will invest in the production of Baijiu products which issued as ABS,which is the first product of CHINA LIQUOR ——”the aged Longfeng liquor”.  The initial issuance plan of ABS is divided into two types, one is listed and publicly traded, and the other is unlisted and traded. The board of directors determines the subsequent issuance mode of ABS according to the trend of asset securities trading price.

According to Chenhan Xiaoying, by the end of 2021, with the help of the largest shareholder, China Liquor co, Ltd. had gathered 100 suppliers in the Baijiu industry, and operated more than 4000 products, initially realizing the company’s strategic core competitive advantage of “the most varieties, the lowest price, the best quality, the most professional and the widest network”. The company’s total share capital has increased from more than 80 million shares to 460 million shares, and the net value of the company’s assets in balance sheet has increased from more than 80 million SGD to 460 million SGD. The average annual growth rate of assets has reached about 125% even during the COVID-19 pandemic.

With the vigorous development of the domestic consumer market, Chinese Baijiu Private Equity Investment Fund(Singapore) has found investment opportunities with broad development space for the Chinese Baijiu industry.

In January 2022, the Ministry of industry and information technology issued a document saying that the consumer goods industry department of the Ministry of industry and information technology studied and drafted the guiding opinions on accelerating the construction of modern light industry system (Exposure Draft).It is proposed to cultivate a number of international well-known brands in wine making and other fields. Encourage powerful enterprises and light industries with Chinese cultural characteristics such as arts and crafts and Baijiu to “go global”, and accelerate the establishment of international brands through mergers and acquisitions.

As one of the world’s six major distilled spirits, Chinese Baijiu has not been widely recognized in the world as other spirits. According to the data, in 2021, the overseas recognition of Baijiu was less than 1%. It can be said that the internationalization of Baijiu has a long way to go.

Chenhan xiaoying believes that under the guidance of macro policies, overseas Chinese businessmen will actively act as connectors and builders. With the joint effort of Chinese people globally, the international status and recognition of Chinese Baijiu industry has seen a significant increase, and will  welcome a more significant development opportunity in the international market.

Mr. WU GUO LIANG, executive director and chairman of Chinese Baijiu Co., Ltd., believes that in the past five years, Chinese Baijiu has been imperceptibly accepted by the world. In financial cities such as New York, Tokyo and London, Baijiu has not only been drunk, but also paid attention to the role of its financial instruments. As an international financial and financing center, Singapore is also the most dynamic capital market in Asia. We are concerned about the development of Chinese Baijiu, which contains unlimited possibilities. Its financial and asset attributes will grow into a new investment and economic highlight of Singapore in the future, and promote the development of Singapore as an international financial Service Center in the future. At the same time, Baijiu will also become a “key” to effectively help China integrate into the world financial market.

Mr. Kang Wee Teck, founding partner of ALTAGE CAPITAL said that in the past few years, the acceptance of Chinese Baijiu in the world, especially in ASEAN, has gradually increased. It is expected that in the next decade, the rise of China’s middle class will bring a bonus period for Baijiu consumption. At the same time, as the value and financial attribute of financial assets, Baijiu has special significance and broad capital market prospects as a bottom asset in the global investment market, which lacks high-quality assets.

Professor WU WEI, founding dean of Nanyang Graduate School of public relations, Nanyang University of technology, said that Chinese Baijiu culture has a long history and has been deeply imprinted in the blood of Chinese people. There is no feast without wine. The state banquet, family banquet and University banquet are inseparable from the contents of the cup. Wine culture is an important part of Chinese excellent traditional culture. With the changes of the times and economic development, China’s wine culture has gradually evolved into a unique political culture and human culture, which has penetrated into all aspects of society.


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