Today (December 16), amid a broader market pullback, the food and beverage (F&B) sector demonstrated resilience. By the close, the Food ETF (515710), which tracks the sector, dipped just 0.17%, significantly outperforming major indices like the Shanghai Composite (-1.11%) and the CSI 300 (-1.20%).
In market movements, mass-consumption stocks and some liquor shares led declines. Kweichow Moutai and Shanxi Xinghuacun Fen Wine Factory saw slight drops, while Bright Dairy & Food fell 2.5%, and Yangyuan Zhiye, Kingdomway, and Angel Yeast lost over 1%.
Capital flows reveal a trend of investors accumulating positions in the F&B sector through the Food ETF (515710) amid recent lows. Exchange data shows that over the past five trading days, the ETF recorded net inflows in three sessions, totaling 16.64 million yuan. Over ten days, inflows reached 97.37 million yuan across eight sessions.
On the news front, Kweichow Moutai’s cultural arm launched its 2026 Lunar New Year gift box, co-created with master artisan Liu Yongsen. The set includes two 200mL bottles of 53% vol. Moutai liquor and will debut on platforms like iMoutai, Xunfeng Digital World, JD.com, Douyin, and Tmall. Analysts note this move enhances Moutai’s cultural premium while expanding its youth outreach, enriching its "second growth curve" product matrix and setting a new benchmark for liquor industry integration with cultural tourism.
Valuations suggest the F&B sector is historically cheap, potentially offering a left-side entry opportunity. As of December 15, the sector’s forward P/E of 20.25x sits at a 10-year low of 6.46%, highlighting long-term value.
Looking ahead, Guosen Securities notes liquor stocks are bottoming in fundamentals, with low valuations and positioning already pricing in short-term pressures. Positive supply-demand signals may catalyze a rebound, favoring firms with pricing power. Similarly, Founder Securities emphasizes structural opportunities in the sector’s cyclical adjustment phase, linking recovery expectations to macroeconomic trends and highlighting defensive attributes amid valuation lows.
For exposure to F&B leaders, the Food ETF (515710) tracks an index with ~60% weight in premium liquor stocks (e.g., Kweichow Moutai, Wuliangye, Luzhou Laojiao) and 40% in dairy, condiments, and beer (e.g., Inner Mongolia Yili, Haitian Flavouring). Off-exchange investors can access the sector via the ETF’s feeder funds (Class A 012548/Class C 012549).
Data as of December 16, 2025.
Risk Disclosure: The Food ETF passively tracks the CSI Sub-Index for Food & Beverage (Base: 2004.12.31; Launch: 2012.4.11). Constituent changes reflect index rules; past performance doesn’t guarantee future results. Holdings are shown for illustrative purposes only. Views expressed are not investment advice. Investors should assess risks independently and consult fund documents. The ETF is rated R3 (moderate risk) for balanced (C3+) investors. Regulatory approval doesn’t imply endorsement. Invest with caution.
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