A China-based wine fund – the Red Sun Fund – is soon to be launched. It will offer an alternative investment opportunity, acquiescing at least 2 million yuan, offering approximated returns of between 15 and 30 percent each year. Not wanting to narrow its focus on international fine wines, the Fund is looking at a whole slew of different types of wines, including brands that seem to be enjoying success in the Chinese market and wineries throughout the region. Those partaking in the project include: Chinese government personnel; Christies HK staff; as well as big name investors sitting on the board.
Since there has been an increasing demand in wine from China, prices in the industry have been boosted to a record high. While instability in the worldwide economy has caused some investors to be wary of equity and real estate market, those who are looking for new investment opportunities might see this industry as a new way of pursuing wealth in order to tackle escalating inflation.