Impact of A-share Quantitative Trading New Regulations and Kweichow Moutai's Investment Value

Based on the question you provided, I will conduct an in-depth analysis from three dimensions: the impact of the quantitative trading new regulations, changes in the competition pattern, and the investment value of Kweichow Moutai.

The quantitative trading new regulations require the clearance of client-exclusive devices within 3 months, which substantially reduces the speed advantage of high-frequency trading. The introduction of this policy marks the regulatory authorities’ rebalancing of excessive technical advantages and will fundamentally change the trading ecology of the A-share market.

According to market analysis, the new regulations are mainly reflected in the following aspects:

• Reset of technical threshold
  : The clearance of client-exclusive devices means all investors return to a relatively fair technical starting line
• Weakening of speed advantage
  : The millisecond-level advantage of high-frequency trading will be significantly reduced
• Reconstruction of transaction costs
  : The original speed premium will gradually disappear

After the implementation of the new regulations, the microstructure of the A-share market will undergo significant adjustments:

: The role of original high-frequency liquidity providers will be weakened, and the relative importance of traditional investors and institutional investors will increase.

: Reduce excessively rapid price fluctuations so that prices can better reflect fundamental values.

: Short-term volatility may decrease, but fundamental-driven volatility will become more prominent.

• For quantitative funds
  : Strategies need to be fully adjusted, shifting from speed competition to information competition and model competition
• For traditional institutions
  : Relative advantages are enhanced, and the value of fundamental research is re-evaluated
• For ordinary investors
  : The technical gap is narrowed, but the ability of fundamental analysis needs to be improved

After the implementation of the new regulations, the competition pattern will shift from “technology vs. technology” to “cognition vs. technology”, mainly reflected in:

: From second-level and millisecond-level competition to daily, weekly, or even monthly investment decisions.

: From pure price data competition to multi-dimensional information competition including industrial chains, policies, corporate governance, etc.

: After high-frequency strategies are restricted, traditional strategies such as value investment, growth investment, and event-driven investment will gain more space.

:

• Mitigation of information asymmetry
  : Weakened technical advantages make information acquisition and analysis more important
• Prominence of long-term investment value
  : The market pays more attention to corporate fundamentals rather than short-term price fluctuations
• Enrichment of investment tools
  : Tighter regulation will spawn more financial products suitable for ordinary investors

:

• Increased professional requirements
  : Need stronger financial analysis and industry understanding capabilities
• Increased patience requirements
  : Short-term windfall opportunities are reduced, requiring a longer investment cycle
• Complexification of risk management
  : Need to conduct risk control in more dimensions

According to the latest data [0], the current share price of Kweichow Moutai is 1,423.99 RMB, with a market capitalization of 1.78 trillion USD. The company’s financial performance remains strong:

:

• Net profit margin: 51.51%
• Operating profit margin:71.37%
• ROE:36.48%
• P/E ratio:19.82x

These indicators show that Moutai still maintains excellent profitability and financial health.

: The new chairman of Moutai pointed out that the liquor industry has fully entered a deep adjustment period of “stock competition” [1]. Against this background, volume control and price protection have become an inevitable choice to maintain brand value and channel health.

:

• Reduce the quota of non-standard products and focus on core products
• Optimize the structure of direct sales channels
• Strengthen dealer management and inventory control

: Moutai’s brand value and scarcity remain its core competitive advantages.

: China’s middle-income group continues to expand, and the consumption base of high-end liquor remains solid [1].

: Current ratio of6.62 and quick ratio of5.18 show extremely strong liquidity.

: A P/E ratio of19.82x is relatively reasonable compared to a net profit margin of51.51% and an ROE of36.48%.

: The liquor industry is still in an adjustment period, and price pressure will continue in the short term.

: Changes in consumption policies may affect the demand for high-end liquor.

: Other high-end liquor brands may seize market share when Moutai controls its volume.

As can be seen from the chart, Kweichow Moutai’s share price has been relatively stable in recent months, with volatility lower than the broader market, reflecting its defensive characteristics. During the period, the increase was -1.45%, while the Shanghai Composite Index rose by9.04%, showing Moutai’s relatively conservative characteristics during the market’s upward period.

1. Enhance fundamental research capabilities
   : Shift from technical analysis to in-depth value research
2. Extend investment cycle
   : Adapt to changes in the time frame under the new environment
3. Diversify strategy allocation
   : Avoid over-reliance on a single strategy or model

: At the current valuation level, Moutai still has allocation value; it is recommended to hold it for the long term and pay regular attention to the company’s strategic execution.

: Can pay attention to bottom opportunities during the industry adjustment period, but need to closely track channel price changes and inventory levels.

: Under the volume control and price protection strategy, the share price may maintain range-bound fluctuations, and short-term trading opportunities are relatively limited.

##5. Summary and Outlook

The implementation of the quantitative trading new regulations marks the A-share market entering a new stage of development, creating a relatively fairer competitive environment for ordinary investors. Against this background, the investment value of high-quality fundamental companies such as Kweichow Moutai will become more prominent.

: With the gradual implementation of regulatory policies, the A-share market will pay more attention to value discovery and long-term investment, which provides better investment opportunities for in-depth research investors.

: The policy of “adhering to domestic demand-led” proposed by the Central Economic Work Conference [2] will provide long-term support for consumption upgrading and high-end consumer goods, which is beneficial to the long-term development of high-quality consumer enterprises such as Moutai.

Investors should seize this structural change opportunity, improve their professional capabilities, and seek investment opportunities in the new competition pattern.

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[0] Gilin API Data - Kweichow Moutai’s Financial Data and Share Price Information

[1] Yahoo Finance Hong Kong - “Moutai: Opportunities Outweigh Risks in Liquor Industry Adjustment” (December 2025)

[2] Yahoo Finance Hong Kong - “Central Economic Work Conference: Adhere to Domestic Demand-led, Rectify Involution, Propose Eight Key Tasks” (December 2025)