Losses hang over top liquor firms in tough first quarter

Slumping economy, austerity drive both help dry up revenue

China's leading liquor producers continue to feel the effects of the ongoing austerity and anti-corruption campaigns, according to reports showing that first-quarter revenues and profits were hard-hit.

Baijiu maker Shui Jing Fang Group, acquired in 2006 by London-based Diageo, saw a loss of 85 million yuan ($13.7 million) in the first three months of 2014 and is forecast to report a net loss this year.