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Tsingtao shares slipped 3.5 per cent after the Chinese beer company said it expects profit for 2016 to fall more than a third compared to the previous year.
The brewer said it in a filing to the Hong Kong stock exchange that it expects net profit to fall 39 per cent year on year because of a bill for income tax of Rmb338m and “stringent market conditions in 2016″.
China’s $70bn-a-year beer market has come under pressure as total volumes have fallen about 5 per cent annually over the past three years. Chinese drinkers are increasingly switching to wine and premium brands, especially craft beers.
Tsingtao’s shares were trading at HK$35.45, while the benchmark Hang Seng index was down 1.2 per cent.