China Wuliangye's shares fall after firm says its chairman has been detained

Reuters03-02
China Wuliangye's shares fall after firm says its chairman has been detained

BEIJING, March 2 (Reuters) - Shares in Chinese baijiu maker Wuliangye Yibin Co 000858.SZ fell 1% on Monday after the company said its chairman Zeng Congqin has been detained by authorities in the city of Yibin.

In a weekend filing to the Shenzhen stock exchange, the Sichuan-based company said it had received notice that Zeng was under detention and that a case had been opened. It gave no details.

Wuliangye said other directors and senior managers were working as normal and it did not expect any impact on its production or operations.

Wuliangye could not be immediately reached for comment.

China's liquor producers have been hit by a slowing economy and tighter scrutiny of lavish official banquets.

Baijiu is a Chinese traditional clear grain spirit, typically with 40% to 60% alcohol content. Wuliangye is widely seen as the country's No.2 high-end baijiu maker, after Kweichow Moutai 600519.SS. Both are state-controlled, publicly listed baijiu producers.

Zeng's predecessor, Li Shuguang, was expelled from the Communist Party in October over alleged violations of discipline and law.

(Reporting by Sophie Yu and Brenda Goh; Editing by Muralikumar Anantharaman)

((Sophie.Yu@thomsonreuters.com; 861056692136;))

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