Search ASX code:
Generic filters

Why the Treasury Wine Estates (ASX:TWE) share price fell 14.3%

The Treasury Wine Estates Ltd (ASX: TWE) share price fell by 14.3% on Tuesday after the market learned of some difficult Chinese-related news.

What happened in China?

The wine business announced that the Chinese Ministry of Commerce has initiated an anti-dumping investigation into Australian wine exports into China.

Treasury Wine Estates said that it would co-operate with any requests it receives for information from Chinese or Australian authorities.

The company tried to reassure investors by saying that it has had a long and respectful relationship with China over many years with its team, partners, customers and consumers.

Management said the company remains committed to China as a priority market and will continue to invest in its Chinese business and its relationships with customers and consumers.

Treasury Wine Estates stated it will continue to build its premium and luxury brands, investing in the local operating model and team, and working with partners to enhance the wine category and grow its contribution to China.

The tensions between Australia and China are continuing to mount after China previously targeted barley and beef for Australia’s role in asking for an inquiry into COVID-19.

This news shows the peril of relying on a Chinese growth story. Investors may wish to look for other ASX growth shares with less reliance on China for growth.

Free: Our Ultimate BNPL Sector Report

Afterpay, Zip Co, Sezzle… is BNPL the opportunity of a lifetime? Or is the sector a ticking time bomb? Our analyst’s 7,500-word report, Our Ultimate BNPL Sector Report, takes a deep dive into the BNPL sector and shines a spotlight on each of the major players in this booming market. You can get the full report right now (for FREE) by entering your email below, we’ll email it to you.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Free: Our Ultimate BNPL Sector Report

Afterpay, Zip Co, Sezzle… is BNPL the opportunity of a lifetime? Or is the sector a ticking time bomb? Our analyst’s 7,500-word report, Our Ultimate BNPL Sector Report, takes a deep dive into the BNPL sector and shines a spotlight on each of the major players in this booming market. You can get the full report right now (for FREE) by clicking the button below.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.