China alcohol ban speculation sends liquor stocks tumbling
Speculation amongst onshore Chinese investors about alcohol ban has sent Chinese baijiu stocks tumbling. It is believed the Government is considering a prohibition order that would apply to all CCP officials and Government workers.
Two China-based sources have told Asia Markets, they think the ban would apply only when the officials and public servants are working or attending business meetings, however some reports, including a report from Bloomberg have suggested the ban could apply to individuals even outside of working hours.
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Speculation emerged on NetEase
The speculation first emerged publicly on Chinese internet platform NetEase yesterday after an article titled Civil servants ushered in a “new adjustment”, began to implement a “prohibition order”, and prohibited drinking during off-duty hours, was posted.
“After entering the workplace, many college students will find that they will inevitably participate in some wine tables at work. Many people call this ‘wine culture’. Things have two sides, but from a practical point of view, drinking alcohol is indeed easy to delay things, which not only brings adverse effects on oneself, but also easily affects others, because, starting from the adjustment of civil servants, a prohibition order will be implemented,” the article reads.
The full post has been transcribed at the end of this report.
The alcohol ban speculation comes after a torrid few years for many Chinese stocks in which investors have been spooked by regulatory fears.
There has been no offical Government response to the speculation.
Liquor stocks fall
Chinese Baijiu stocks have posted sharp losses in trading so far this week.
Kweichow Moutai (SHA: 600519), which produces China’s most consumed brand of Baijiu, is down 5%.
For a short period in 2020, Kweichow Moutai, became the largest listed Chinese company by market cap, such is the dominance of the business.
Elsewhere, shares in Wuliangye Yibin (SZ: 000858) have fallen 6.5%, while smaller distiller, Luzhou Laojiao (SZ: 000568) is also down around 6%.
The ban would be a major move by the Chinese Government ahead of the one-in-five-year party congress, in which Xi Jinping in expected to secure an historic third term in power.
In 2019, more Baijiu was consumed in China than the total amount of Tequila, Rum, Vodka, Gin and Whisky, worldwide.
The full NetEase post that sparked the China alcohol ban speculation
(The original post seen by Asia Markets was in Chinese and has been translated to English)
As civil servants of the country, their job responsibilities are to serve the people, so whether they are civil servants themselves or the public, they have strict requirements for this position. Nowadays, college students are faced with the problem of difficult employment. After graduation, it is difficult to find a job that suits their heart. Every student has come to this day through their own accumulation, and everyone wants to find a suitable job for them. Work.
College students take the initiative, actively seek employment opportunities, and are reluctant to lie down. Kao Gong has become one of the best choices for college students to find employment. Although the competition for civil service positions is fierce, the vast majority of candidates even have to take two or more civil service exams to succeed. , but this does not repel the enthusiasm of students to apply for the exam. The time line for taking exams is getting longer, and students are preparing for exams at home. In the absence of jobs, it will naturally bring some financial pressure to parents, but parents continue to support them as always. The work within the system is very persistent.
The state has issued relevant policies to expand the recruitment of civil servant positions Our country’s education is developing continuously, and both primary and secondary education and higher education have achieved fruitful results, which can be seen from the rising number of college graduates. When a large number of college graduates flood into the job market, many people compete for one position, which brings a lot of pressure to the labor market, and many college graduates face unemployment for a long time after graduation, causing anxiety among students psychology. In order to alleviate the employment pressure of college students, the state has issued relevant policies in a timely manner and expanded the number of civil servant positions, providing more options for college students and giving them room to play their strengths.
The reason why civil servants are so popular is not only because the job is extremely stable, but also because the job has a complete social welfare and security system. In the eyes of parents, it can be said that this is one of the most ideal jobs. Because of the special nature of their positions, civil servants must have stricter requirements. As the so-called strict self-discipline, not long ago, the official issued a notice that civil servants ushered in a new adjustment.
Civil servants ushered in a “new adjustment”, began to implement a “prohibition order”, and prohibited drinking during off-duty hours Society is constantly developing, and in the process of development, there will be some adjustments. This is also to conform to the mainstream development. Especially in recent years, whether it is a public institution or a civil servant position, corresponding adjustments have been made. Regarding the adjustment of civil servants, one of the attention-getting items is the “prohibition of alcohol”. It is worth mentioning that civil servants are not allowed to drink alcohol not only during working hours, but also after get off work.
After entering the workplace, many college students will find that they will inevitably participate in some wine tables at work. Many people call this “wine culture”. Things have two sides, but from a practical point of view, drinking alcohol is indeed easy to delay things, which not only brings adverse effects on oneself, but also easily affects others, because, starting from the adjustment of civil servants, a “prohibition order” will be implemented.
Netizens have different opinions Regarding the “prohibition order”, netizens also have different views, some support it and some oppose it, and each has given specific reasons. Some netizens think that the implementation of the “prohibition order” is no problem, but civil servants should not be deprived of their right to drink after get off work. They can only request them during work hours. After all, office workers are under pressure, and sometimes they have to rely on drinking to relieve it. It is appropriate. drinking is no problem. Some netizens said that this should have been the case long ago, because civil servants should play an exemplary role. Now there are too many cases of mistakes due to drinking. This can also improve work efficiency, which is simply killing two birds with one stone.
Is “prohibition” necessary? The starting point of the “prohibition order” must be good. It is not only to ensure the work efficiency of civil servants and to regulate the behavior of civil servants, but also to be responsible to the people. The author believes that it is still very necessary to implement it. Some people may think that such a one-size-fits-all approach is too arbitrary, but the author believes that the “prohibition order” is still necessary. After all, the work of civil servants is of a special nature. If you delay work because of drinking, you will not be able to explain to the masses. However, we can also see from everyone’s heated discussion about the “prohibition order” of civil servants that the public keeps abreast of current events and loses focus on policy news. Only when different voices come out can we find constructive ones. Opinion.
Summarize The civil service position has become the most popular and even the first choice for college students to apply for the exam. The competition among students is particularly fierce, but it should be reminded that the original intention of students to apply for the exam must be based on the premise of loving this position. Loving one’s own work is the most critical point in being able to do one’s own work well. If the choice is made solely because of the salary of the civil servants, it would be too narrow. Finally, the “prohibition order” for civil servants is also to prevent civil servants from drinking and making mistakes. Based on the starting point of being responsible to everyone, this is also a responsibility to the people. Topic discussion: What do you think of the “prohibition” of civil servants?