CHINA SPIRITS Accelerated destocking and healthier inventories, but awaiting clear/broad-based demand recovery; Upgrade King's Luck/Gujing to Buy on risk/reward Since our spirits sector downgrade on 10 July 2025, the CSI liquor index has been down -30%, underperforming MSCI Consumer Staples at -18%, due to concerns over anti-graft policy impacts, industry-wide destocking risks, and a slow recovery in demand amid weak macro environment. While we acknowledge that some structural challenges likely remain (i.e. ...