Chinese Premier Wen vows to ban use of public funds to buy 'high-end' alcohol, saying consumption by government officials artificially driving up prices of premium brands
March 27, 2012
– Warning that corruption may endanger the ruling Communist Party’s survival, Chinese Premier Wen Jiabao pledged to ban the use of public funds to buy “high-end” alcohol, Bloomberg reported March 27.
Wen said that consumption by government officials is artificially driving up prices of premium brands such as Kweichow Moutai Distillery (a 106-proof liquor) and Moutai, a sorghum-based liquor that sometimes sells for twice the sales price set by the company itself.
Wen’s announcement caused shares of both companies to drop by more than 6%.
The primary source of this article is Bloomberg, New York, New York, on March 27, 2012.