The food and beverage sector mounted a counter-market advance today (June 23)! Huabao's Food and Beverage ETF (515710), which reflects the overall trend of the sector, fluctuated higher after opening, with its intraday price reaching a peak gain of 1.89%. At the time of writing, it is up 1.26%.
Among the constituent stocks, mass-market consumer goods led the gains, with some leading baijiu producers also performing strongly. As of writing, Foshan Haitian Flavouring and Food Co.,Ltd. is up over 5%, Huanlejia Food Co.,Ltd. has risen more than 4%, and stocks like Zhejiang Yiming Food Co.,Ltd., Qianhe Condiment And Food Co.,Ltd., and New Hope Dairy Co.,Ltd. are also among the top gainers.
Key Catalyst for the Move
On the news front, recently, Chen Hua, Chairman of the Moutai Group, chaired the Moutai 1935 Brand Market Work Meeting for 2026 in Beijing. The meeting indicated that, overall, the inventory-to-sales ratio for Moutai 1935 is within a healthy and reasonable range, with market pressure effectively alleviated, a continuously positive development trend, and a steadily strengthening foundation. From January to May, both revenue and sales volume for Moutai 1935 liquor have steadily increased, with the market fundamentals continuing to improve. The terminal transaction prices for the Classic and Premium editions have remained stable, and the overall volume-price situation is healthy and robust.
Current Valuation Perspective
From a valuation standpoint, the food and beverage sector remains at relatively low levels. Data shows that as of the close yesterday (June 22), the price-to-earnings ratio of the CSI Food and Beverage Sub-Industry Index, which the Huabao Food and Beverage ETF (515710) tracks, was 19.44 times. This places it at a low level, around the 2.74th percentile over the past decade, highlighting the attractive value for medium to long-term allocation.
Outlook for the Sector
Looking ahead for the food and beverage sector, Aijian Securities stated that demand is expected to gradually recover under the catalysis of consumption-boosting policies. The baijiu industry's efforts to control supply and stabilize prices are driving wholesale price recoveries, and the destocking process is gradually nearing its end. The industry is currently at a low valuation, with pessimistic expectations largely priced in. Leading liquor companies are increasing dividend payout ratios, making their dividend yields somewhat attractive for allocation. From a long-term perspective, during the industry adjustment period, the primary choice should be high-quality leading companies with strong earnings certainty.
Kaiyuan Securities noted that the baijiu industry is currently in a period of bottoming out fundamentals, with the downward trend in total volume slowing. After a decline in both volume and price post-2023, weakened business demand and the popularization of health-conscious consumption concepts jointly suppressed industry demand. Terminal consumption stabilized after hitting a low around mid-2025, but channel destocking has dragged on shipment performance. The industry is expected to gradually recover in the second half of 2026.
How to Gain Exposure
To gain one-click exposure to the core assets of the food and beverage sector, focus on Huabao's Food and Beverage ETF (515710). According to statistics from China Securities Index Co., Ltd., Huabao's Food and Beverage ETF (515710) tracks the CSI Food and Beverage Sub-Industry Index. Holdings in leading baijiu companies account for nearly 50% of the portfolio, with top ten holdings including Kweichow Moutai Co.,Ltd., Wuliangye Yibin Co.,Ltd., Luzhou Laojiao Co.,Ltd., Shanxi Xinghuacun Fen Wine Factory Co.,Ltd., Jiangsu Yanghe Brewery Joint-Stock Co.,Ltd., Inner Mongolia Yili Industrial Group Co.,Ltd., and Foshan Haitian Flavouring and Food Co.,Ltd.. Off-exchange investors can also access the core assets of the sector through the Food and Beverage ETF Link Fund (Class A: 012548, Class C: 012549).
Note: When subscribing for or redeeming fund units, subscription and redemption agents may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges and registration institutions. Please refer to the fund's legal documents for detailed fee information.
Source: Shanghai and Shenzhen Stock Exchanges, etc., as of June 23, 2026. Reminder: Recent market volatility may be significant. Short-term gains or losses do not indicate future performance. Investors must invest rationally based on their own financial situation and risk tolerance, paying high attention to position and risk management.
Risk Disclosure: Huabao's Food and Beverage ETF passively tracks the CSI Food and Beverage Sub-Industry Index. The base date for this index is December 31, 2004, and it was launched on April 11, 2012. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its backtested historical performance does not indicate the index's future performance. Individual stocks mentioned herein are listed for objective illustration as index constituents only and do not constitute any stock recommendations, nor do they represent the investment direction of the fund manager or the fund. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any form to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. Investors should carefully read the Fund Contract, Prospectus, Fund Product Key Facts Statement, and other fund legal documents to understand the fund's risk-return characteristics and choose products that match their own risk tolerance. The past performance of a fund does not predict its future performance, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. According to the fund manager's assessment, the risk rating of Huabao's Food and Beverage ETF is R3-Medium Risk, suitable for Balanced (C3) and above investors. The appropriateness matching opinion is subject to the sales institution. Sales institutions (including the fund manager's direct sales channels and other sales institutions) conduct risk assessments of the above funds based on relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by the fund manager. Opinions on appropriateness from various sales institutions may not necessarily be consistent, and the fund product risk rating results issued by fund sales institutions shall not be lower than the risk rating results issued by the fund manager. The description of the fund's risk-return characteristics in the fund contract and its risk rating may differ due to different considerations. Investors should understand the fund's risk-return profile and, based on their own investment objectives, horizon, experience, and risk tolerance, prudently select fund products and bear the risks themselves. The China Securities Regulatory Commission's registration of the above funds does not indicate a substantive judgment or guarantee of their investment value, market prospects, or returns. Fund investment involves risks.
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