(Yicai Global) Feb. 8 -- The world's most valuable distiller Kweichow Moutai Co. is discounting its highly sought-after flagship liquor for seven days before the upcoming Chinese New Year, a week-long holiday starting Feb. 15, after regulatory pressure to keep prices in check.

A 500-millilitre bottle of Moutai's 53 proof Flying Fairy baijiu usually costs CNY1,499 (USD237), but the Guizhou-based producer cut the price by CNY100 today in Beijing, Guangdong and Hunan Beijing Business Daily reported. Shoppers will need to supply their identification and will be restricted to buying two bottles.

"The promotion will be rolled out in local stores," a distributor based in the capital said. "The actual amount available will depend on the stock levels of individual distributors."

Flying Fairy has been in short supply for several months and sells for up to CNY2,000 on the secondary market.  Regulators have called on the firm to curb price hikes of Flying Fairy, which cost CNY819 in early December, an industry expert said. Chinese New Year is a popular gift-giving period when many families dine and drink together, which leads to an increase in consumption of the national drink. The promotion will have little impact on secondary market prices, the expert added.

The firm dished out penalties to 10 distributors earlier this month, hitting them with fines and reducing their order volumes for unethical practices, such as marking up prices, hoarding product or transferring stock to affiliated companies to circumvent supervision and sell at higher prices.

Beijing Business Daily contacted Moutai stores in Hunan and Guangdong this morning, but the shops had already sold out. Customers need to line up early tomorrow or make an online reservation if they want to buy the liquor.

The product's popularity has led to several counterfeiters trying to profit from the craze. Police in the baijiu maker's home province destroyed almost 7,500 bottles of fake Moutai last month, state-owned news agency Xinhua reported.