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Macro US Stocks

Huatai Securities Says Baijiu Industry May Have Hit Cycle Bottom

Huatai Securities said in a research note that the Chinese baijiu industry may already be at the bottom of its current downcycle, despite pressure on sales during the 2026 Mid-Autumn peak season. The brokerage cited inventory destocking and a stabilizing price floor as bright spots, and said the sector could recover in two phases: expectation repair before the 2027 Spring Festival, followed by a low-base fundamental rebound during the 2027 Spring Festival and Mid-Autumn peak seasons.

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AI take

This is a sentiment marker as much as a sector call: a major domestic brokerage publicly naming a cycle bottom while peak-season sales are still weak implies the bear case is already priced into expectations. The distinction between an expectation-repair phase and a later fundamental rebound matters, because it concedes that earnings visibility remains poor until the low-base comparison period. For baijiu-adjacent RWA and consumer-asset exposure, the open question is whether inventory destocking and a firmer price floor hold through the next peak season, or prove to be a temporary pause in a longer downcycle.

Generated by AI for reference only.

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