China Liquor:NDRC's inspection might lead to channel de-stocking

NDRC to inspect pricing of liquor market

    Accoding to www.sina.com, National Development and Reform Commission("NDRC") released a notice on 31Jan 2018to carry out special inspections onthe prices of national liquor and tobacco market. NDRC requires local regulatorsto monitor pricing and inventories of liquor market in each province. Specially,the notice require that 1) manufacturers and distributors shall not stock upinventories to an abnormal level; 2) manufacturers and distributors shall take theresponsibility to keep retail price at a reasonable level; 3) liquor companies shouldincrease supply based on market demand. According to recent public news, atleast eight provinces have begun to implement this new measure and inspectthe liquor market this week. (Figure 1)