The food and beverage sector demonstrated resilience today (November 21), ranking third among the 30 CITIC primary industries by midday. The Food ETF (515710), reflecting the sector's overall performance, rose as much as 0.48% intraday and was up 0.16% by midday, bucking the broader market trend.
Among constituents, leading liquor stocks stood out, with some consumer goods also gaining. By midday, Shede Spirits surged nearly 3%, while Tianwei Food and Jinhu Liquor both rose over 1%. Industry giants such as Kweichow Moutai, Wuliangye, and Luzhou Laojiao also edged higher.
Notably, after recent adjustments, liquor stocks are trading at relatively low levels. Many institutions view this as an opportune time to position in the sector. Analysts note increasing signals of a bottoming-out in the liquor industry, with well-managed, strategically clear leaders poised for stronger growth.
In related news, Douyin announced on November 20 that it had identified black-market accounts promoting counterfeit Moutai products through close-up shots and live-streamed "high-imitation Moutai supplies" to lure off-platform transactions. The platform warned users against such scams, which may lead to fraud or unwitting involvement in illegal activities. Douyin has banned 600,000 such accounts this year.
Analysts suggest Douyin’s crackdown on abnormally low-priced and counterfeit goods underscores its commitment to e-commerce governance. While this may disrupt gray-market-dependent accounts short-term, it benefits the long-term health of the ecosystem, safeguarding premium liquor market order and consumer rights while protecting brand integrity.
Valuations in the food and beverage sector remain historically low, presenting a potential entry point. As of November 11, the Food ETF’s (515710) underlying index, the CSI Sub-Index for Food, traded at a P/E of 21x—near its 10.2% decile over the past decade, highlighting its medium-to-long-term value.
Looking ahead, Huatai Securities expects policy-driven domestic demand recovery to bolster consumer confidence, supporting earnings and valuation rebounds in the sector.
For exposure to core food and beverage assets, consider the Food ETF (515710), which tracks the CSI Sub-Index for Food and Beverage. The fund allocates ~60% to premium and mid-premium liquor leaders and ~40% to dairy, condiments, and beer segment leaders, including top holdings like Kweichow Moutai, Wuliangye, Luzhou Laojiao, Fenjiu, Yanghe, Yili, and Haitian Flavouring.
(Source: SSE/SZSE data as of November 21, 2025.)
Risk Disclosure: The Food ETF passively tracks the CSI Sub-Index for Food and Beverage (base date: December 31, 2004; launch date: April 11, 2012). Index constituents are adjusted per its rules, and past performance does not guarantee future results. Mentioned stocks are for illustrative purposes only and do not constitute recommendations. Investors should review fund documents and assess risk suitability. The fund is rated R3 (moderate risk) for balanced (C3) or higher risk-profile investors. Regulatory approval does not imply endorsement of the fund’s merits. Invest with caution.
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