How China’s First Bordeaux Purchase Went Sour?

In 2008, when 28-year-old Qingdao heiress Daisy Haiyan Cheng acquired the 60-hectare Chateau Latour Laguens in Bordeaux, it instantly captured headlines across China, celebrated as a bold symbol of the country’s growing ambitions in the world of fine wine.

Fast forward 16 years, and that once-prized estate is hitting the auction block for a mere €150,000 excluding vineyards. In a cruel twist of fate, Chateau Latour Laguens—a first in Chinese-owned Bordeaux wineries—has gone from a symbol of prestige to a painful reminder of dashed hopes and staggering financial loss. Today, it sits quietly decaying, its grand halls now home to bats rather than guests, its vines left untended, a hollow echo of dreams that once sparkled as brightly as a Bordeaux vintage.

Located in Bordeaux’s Entre-Deux-Mers region, Chateau Latour Laguens once symbolized the promise of Chinese investment in French wine. Cheng, the daughter of Longhai Investment Group founder Cheng Zuochang, envisioned a luxurious destination with tasting rooms, a boutique, and high-end accommodations. Today, the auction price, excluding the vineyard, starts at just €150,000—about the cost of an apartment in a second-tier Chinese city.

Longhai’s venture in Bordeaux has ushered in what was later coined as China’s “red obsession” over Bordeaux. It’s estimated Chinas has snatched up more than 200 Bordeaux estates since 2012 including estates bought by billionaire Jack Ma, actress Zhao Wei and Hong Kong businessman Peter Kwok.

Longhai Investment Group, a real estate firm based in Qingdao in Shandong province, made waves with the purchase in 2008, with Chinese media dubbing Cheng as “China’s first Bordeaux buyer.” Headlines proclaimed, “28-Year-Old Qingdao Heiress Buys 600-Year-Old French Chateau for RMB 40 Million,” highlighting the lofty aspirations behind the acquisition. Longhai later rebranded its Qingdao trade arm to Latour Laguens (Qingdao) International Wine Co., Ltd., signaling its intent to bring Bordeaux wines to China’s rapidly growing market.

Initially, Latour Laguens benefited from China’s wine boom. A Qingdao wine merchant told Vino Joy News that the estate saw strong sales through group buying, distributors, and high-end supermarkets, bolstered by Longhai’s connections in the real estate sector. But as competition in imported wine intensified and China’s economy slowed, Longhai’s business suffered, dragging down Latour Laguens’ market performance.

Public records show that Longhai Investment Group now faces financial strain, with 28 direct risks and 283 associated risks tied to its name, and debt disputes totaling RMB 175 million (US$24.6 million). Cheng herself is listed as a defaulter, linked to a private loan dispute involving Latour Laguens (Qingdao) International Wine Co., Ltd., with an unpaid debt of RMB 511,700.

The winery’s official WeChat account, last updated in April, features an online store offering wines starting at RMB 1,688 (US$247) per bottle for Bordeaux Superieur labels, though demand appears lackluster.

Chateau Latour Laguens’ fate is not unique among Chinese-owned wineries in Bordeaux. Last year, Dalian Haichang Group’s nine Bordeaux chateaux were seized by local authorities over alleged subsidy misuse. In another case, Kweichow Moutai’s Chateau Loudenne was auctioned in 2022 after a series of legal and financial troubles, with French buyer Christophe Gouache acquiring the estate.

Shen Yi, a former executive in China’s domestic wine industry, says that many chateaux faced operational challenges before being purchased by Chinese investors, who often lacked expertise in vineyard management. “Most Bordeaux wineries acquired by Chinese investors are running at a loss,” Shen said. “Many were enticed by perceived profits in wine but underestimated the industry’s demands. Their core businesses are in China, making it difficult to manage wineries abroad effectively.”

Shen added that China’s economic downturn has made matters worse, with some companies offloading underperforming assets to raise capital. “The domestic environment has been challenging, and wine sales are down, so companies are selling assets to recoup funds,” he said.