It never rains but it pours. This phrase is an apt description for Dukang. Why is this so? With reference to Chart 1 below, it is apparent that Dukang is a laggard in the recent market rally. Dukang’s price had suffered a setback in November after the official Xinhua news agency cited findings by Hunan provincial authorities who corroborated earlier Chinese press reports that excessive plasticizers (i.e. toxic chemicals which can induce early female puberty and cause damage to men's reproductive health over prolonged consumption.) were found in Jiugui Liquor products.
In addition, there was continuous strong anti-corruption rhetoric from the new Chinese leaders which might reduce demand for expensive baijiu. This is because expensive baijiu such as Moutai are often used as gifts to local government officials. Furthermore, according to an article published in the PLA Daily (i.e. the official army newspaper) last month, expensive liquor ...
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