PICC Property and Casualty Company Limited, the largest non-life insurance company in the Chinese mainland issued alcohol prohibitions that forbid employees to drink on or off work, except for weekends.
The prohibitions were said to be released on January 31 but triggered shares in spirit companies to plummet on Monday.
The liquor ETF dropped as much as 3 percent.
Baijiu companies Guizhao Maotai and Wuliangye also dived. PICC P&C didn’t confirm or deny the prohibitions, but said the company wouldn’t comment publicly on any internal communications. Securities firms said the China Banking and Insurance Regulatory Commission issued similar bans in 2017, so there is no need to overreact now.
