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China launches Bordeaux, Burgundy investment fund

A new investment fund has been launched in China that will trade in the futures of fine and rare Bordeaux and Burgundy wines.

With the growing Chinese middle class showing an increasing interest in Bordeaux and Burgundy in the last few years, the local knowledge base has now developed sufficiently to create an investment fund for quality vintages.

The Dinghong Fund will aim at top Bordeaux labels such as Chateau Mouton Rothschild, Chateau Latour, Chateau Lafite Rothschild and Chateau Haut-Brion.

Bottles from top Burgundy vineyards Domaine de la Romanee Conti and Domaine Leflaive will also be targeted.

People looking to invest in the fund will need to produce a minimum stake of Rmb1 million (£96,000), and sales documents for the fund say it will offer investors protection from persistent inflation.

Co-founder Ling Zhijun says there is already a lot of interest in the fund. In fact, her main problem is convincing investors to stay calm and understand that there is a limited amount of fine wine available.

"They think that starting with Rmb200m [£19.2 million] is not enough. So we have to explain that we can't invest it all at once. Investing over time is a better way to spread out the risk," she explained.

However, Ms Ling added that the fund is not just about making money for investors, although that of course is a major aim, but it is also about "deepening Chinese appreciation" of fine and rare wines.

Bordeaux itself is looking to take advantage of Chinese drinkers' eagerness to learn with a new marketing drive in the country.

The region's trade association, the Conseil Interprofessionnel du Vin de Bordeaux (CIVB), recently opted to re-appoint Burson-Marsteller on a three-year contract to help it retain its position as the most coveted region for wine among Chinese drinkers.
 



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Bordeaux and Burgundy wines will be targeted by the new Dinghong Fund.
Bordeaux and Burgundy wines will be targeted by the new Dinghong Fund.
Bordeaux and Burgundy wines will be targeted by the new Dinghong Fund.