Will the Chinese celebration of harvest and the moon see wines linked to rabbits and dragons in demand or classic Bordeaux icons?
In this Year of the Rabbit (Chinese Zodiac) the annual Moon Festival may see some Chinese oenophiles seek out Chateau Smith Haut-Lafitte. Famed for its organic farming and vineyard statues, one of which is a giant rabbit leaping over the vines.
Smith Haut-Lafitte is hitting the headlines as it hosts King Charles III and Queen Camilla in their first state visit to Bordeaux. It is likely the Chateau was chosen for its commitment to biodiversity and organic farming with owner Sylvia Cathiard claiming to have been inspired by the King and his leadership of the green agenda.
Which 'Dragon wine' may toast the 'Moon Festival'?
2024 is the Year of the Dragon and gift giving this Mid-Autumn Festival could easily see dragon gifts top the list from now into the new year. Domaine Clarence Dillon, owner of First Growth, Chateau Haut Brion, has adopted the dragon as a symbol at Chateau Quintus, its newest venture in St Emilion.
An extraordinary bronze dragon sculpture with a six-metre wingspan, created by Mark Coreth stands proudly, overlooking this highly regarded vineyard - see picture above. Big things are expected of Chateau Quintus and Le Dragon de Quintus could be a highly popular Mid-Autmn Festival and 2024 gift for Chinese wine lovers.
China's influence on wine investment
Chinese buyers are still drawn to the iconic Bordeaux First Growth estates, and in particular Chateau Lafite Rothschild. It won’t go unnoticed that King Charles enjoyed Chateau Mouton Rothschild 2004 in Versailles this week, poured from double magnums adorned with the label he was asked to design for the estate nearly 20 years ago, as the Prince of Wales.
China first stamped its mark on the fine wine investment market in 2009 after Hong Kong removed Duty in 2008 and the Chinese State launched its economic stimulus programme, creating vast new wealth.
The 2008 Bordeaux en primeurs in 2009 were unleashed onto a market with burgeoning Eastern demand. The number 8 is regarded in China as a symbol of luck and the fashion of luxury gift-giving was on the rise. This stimulated a fast-growing wave of new buyers for Bordeaux which kept expanding until the market peaked in 2011. To these market entrants aspirational brand was everything and the First Growths topped the shopping list with Lafite Rothschild the pinnacle.
Chinese influence grew to not just buying the great wines of Bordeaux and Burgundy but to acquiring vineyards in France. This ultimately led to partnering with the leading players, such as Domaines Barons de Rothschild and LVMH, to establish wine estates in China.
LVMH, owners of Chateaux Cheval Blanc and Yquem plus iconic Champagne houses, created Ao Yun and its 2013 vintage has seen increasing trade on Liv-ex. Rothschild’s Domaine de Long Dai was established in 2009 and released its first vintage (2017) to the market in 2019 at $335 per bottle. Jancis Robinson MW observed that “It is subtly Lafite-like … as bone dry as the Bordeaux First Growth, utterly correct, if not absolutely stunning.”
Our view
Iconic Bordeaux and Burgundies could be in demand this week, however China is in a different position today compared to the explosive period of growth the country was experiencing last decade, when it drove the Bordeaux prices to unsustainable levels.
An economic superpower, China’s performance and forecasts have a major influence over world economies and can be the source of volatility in global financial markets. Current issues in the Chinese property sector linked to Evergrande’s likely demise is creating havoc in listed commodities and mining stocks this week across global financial markets. But we don't expect these events to put a stop to the Mid-Autumn Festival celebrations.
For the latest wine investment data and market news, see our September Market Report and speak to our specialist team on 0203 384 2262.