Tracking China’s Wine Investment Trends

Tracking China’s Wine Investment TrendsAs was recently revealed by a BWC Management and Consulting publication, fine wine investment has been rising in Asia by 40%, compared to only 10% in the rest of the world. Even though there was great expectation for an increase in China’s involvement in the international wine market, these new figures wildly exceeded previous estimates. It all began back in 2009 when the Chinese arranged some highly profitable Sotheby’s auctions that were held in Hong Kong. In accordance with predictions made at that time, China has emerged as an international leader in the fine wine trading. In a few short years the Chinese market has moved up to number five on the global list of wine consumption and imports more wine from Bordeaux than its UK and German counterparts.

Wine Consumption Versus Investment

In those earlier years, wine purchased by the Chinese was predominantly for drinking pleasure. Although that trend has also increased, savvy Asian investors quickly understood the value of safely investing in fine wine. It may have been spurred on by the sale of a litre of Chateau Petrus that brought in £58,000 at the Hong Kong auction, but for whatever reason, the tendency of wealthy Chinese businessmen to safeguard their money by investing in fine wine is now well known. As a matter of fact, they not only invest in wine to versify their financial portfolios, but they also buy it as impressive gifts to give to their appreciative friends. This expensive habit was the focus of an article that came out in an annual report regarding the richest individuals in China. The Chinese Millionaire Wealth Report stated that not only do the Chinese buy the world’s finest vintage for personal pleasure or for investment, but also to gift to their friends.

Low Risk Investment in Fine Wine

The Senior Private Client Portfolio Manager of BWC Management & Consulting, Samuel Cheung is not surprised. According to him, the Chinese simply realised that investment in stocks and shares can be very unstable so they’re taking advantage of the low risk nature of wine investment.

Lafite as the Preferred Gift of Chinese Millionaires

A new study published in the Chinese Millionaire Wealth Report shares the secret of giving gifts to ultra wealthy Chinese men. It seems that watches are the most coveted gift followed closely by a fine bottle of red wine. Appreciation of the best wines has been growing since the Chinese became a dominant force in fine wine trading in 2009 after organizing a series of Sotheby’s wine auctions. At that event, a bottle of Chateau Petrus exceeded all estimates when it reached a price tag of £58,000. With a strong entry into the world of wine, no one doubted that China was on its way to becoming an international capital for trading in fine wine. The early Chinese market bought wine for its own consumption, but it has now matured into a solid player on the international wine scene.

BWC Management & ConsultingWine that Reaches Cult Status

When the movie God of Gamblers aired in 1989, few Chinese had ever heard of Lafite. But that all changed when a movie star from Hong Kong, Chow Yun-fat spoke the famous lines, “Uncork me a bottle of 1982 Lafite.” Lafite Rothschild became a status symbol overnight and even reached cult popularity. With the increased demand for Lafite, the limited stock became even dearer. According to BWC Managing and Consulting’s senior private portfolio manager, Samuel Cheung, vintage from Chateau Lafite Rothschild will continue to be a source of consistent returns. An increasing number of wealthy individuals in China choose Lafite as a tangible asset that holds its value while consistently appreciating each year. Besides being an excellent investment, Lafite Rothschild is the single brand of wine that is on the top fifteen brands that male millionaires prefer to receive as gifts.

So if you are looking for ways to make a Chinese millionaire happy, give a gift of Lafite!