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Chinanews, Beijing, June 11 - The price of the Pu'er tea, which has been much sought in the market, has suddenly dropped fiercely. Some collectors complain that they have suffered from a 50% loss.
Though the capital flow to the stock market is blamed for the sudden price drop, Wang Qing, deputy director of China Tea Marketing1 Association, admits that there are a lot of bubbles in the Pu'er tea market, for too many investors2 have jacked up its price. The price drop first occured in the high-end market, in which some kind of the Pu'er tea were sold at 20,000 yuan or more each item. Currently, the average price of items in the high-end market is no more than 10,000 yuan. The top-class Xiaguan tea is only sold at 195 yuan per kg, while its highest price used to be 400 yuan per kg. The tea from Xishuangbanna was once sold at 1,250 yuan per kg, but its price nowadays is no more than 800 yuan per kg. The price of ordinary Pu'er tea still remains3 the same. Analysts4 believe it is unavoidable for Pu'er tea to depreciate5, for the previous price hike was the result of irrational6 marketing behavior, but not demand-supply gap in the market. Besides, most of the Pu'er tea had been cornered by speculators. When these had entered the market, and capital had flown to the stock market, the price of the Pu'er tea would surely start to drop. "In general, the price of tea from Yunnan is not much more expensive than other tea varieties, but I believe it will reach a more reasonable price in the near future," said the boss of a big tea shop in Beijing.
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