0013 GMT - Australian wine exports to China are surging since Beijing lifted tariffs. Industry group Wine Australia says shipments to mainland China increased by A$604 million to A$612 million in the 12 months through September. But Jefferies analysts Michael Simotas and Naveed Fazal Bawa say it's too early to be entirely clear on the strength of Chinese demand, as the increase reflects restocking given that Australian wine was absent from the market for a few years. The Jefferies analysts are still bullish on Australia-based vintner Treasury Wine. "China demand needs to improve for TWE to deliver longer term targets," the Jefferies analysts say, "but we see little near-term risk given (the) supply shortfall." They also say weakness in China imports from other markets suggest Australia is displacing competitors. (mike.cherney@wsj.com; @Mike_Cherney)
(END) Dow Jones Newswires
October 21, 2024 20:13 ET (00:13 GMT)
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