The food and beverage sector experienced a sharp intraday rally today (July 10th). The Huabao Food and Beverage ETF (515710), which reflects the overall trend of the sector, opened with continued low-level volatility before rapidly climbing into positive territory. Its intraday price reached a maximum gain of 1.73%, and as of this report, it is up 1.08%.
In terms of constituent stocks, both baijiu and consumer staples showed impressive performance. As of this report, Shiyao Innovation rose over 6%, while Bright Dairy & Food Co., Ltd. gained over 5%. Gujing Distillery Co., Ltd. and Huanlejia rose more than 4%. Leading baijiu producers including Kweichow Moutai Co.,Ltd., Wuliangye Yibin Co.,Ltd., Luzhou Laojiao Co.,Ltd., Shanxi Xinghuacun Fen Wine Factory Co.,Ltd., and Jiangsu Yanghe Brewery Joint-Stock Co.,Ltd. all traded in the green.
Key Market Catalyst
On the news front, Kweichow Moutai's Sauce-flavor Liquor Marketing Company held its 2026 first-half marketing work conference at the Moutai Conference Center on July 9th. The meeting noted that the subsidiary successfully completed its established operational tasks for the first half of the year, achieving stable development against the backdrop of industry cyclical adjustments and structural changes.
Analyst Perspectives on the Sector
China Post Securities indicated that the consumer sector is currently in a window for a staged rebound. With the Q2 earnings season approaching, it is advisable to select targets with upward operational trends and high earnings certainty. Following previous valuation adjustments, the market has largely priced in pessimistic expectations for a fundamental downturn. As second-quarter operating data gradually becomes clearer, positive signals are emerging within the sector.
Current Valuation Landscape
From a valuation perspective, the food and beverage sector remains at a low level. Data shows that as of yesterday's (July 9th) close, the underlying index for the Huabao Food and Beverage ETF (515710), the CSI Sub-Index for Food & Beverage, had a price-to-earnings ratio of 18.64 times. This places it at the 0.98 percentile over the past decade, indicating a historically low valuation and highlighting its medium-to-long-term allocation appeal.
Outlook and Investment Strategy
Looking ahead, Hualong Securities stated that current valuations in the consumer sector are already at historically low levels, fully reflecting subdued market expectations. Following the implementation of more policies aimed at stimulating consumption, the sector is expected to witness valuation recovery. They recommend focusing on sector leaders with good growth potential and low valuations.
Guosheng Securities added that current positioning and valuation levels in the baijiu sector are at historical lows. The trend of industry fundamentals and stock prices bottoming out is clear. A short-term shift in capital risk appetite is expected to drive valuation repair, while the long-term configuration value of leaders excelling in industry consolidation, healthy sales, and market share gains is prominent.
Accessing Core Sector Assets
For one-stop access to core assets in the food and beverage sector, focus on the Huabao Food and Beverage ETF (515710). According to China Securities Index Co., Ltd., this ETF tracks the CSI Sub-Index for Food & Beverage Industry. Holdings in leading baijiu companies account for nearly 50% of the fund, with top ten holdings including Kweichow Moutai Co.,Ltd., Wuliangye, Luzhou Laojiao, Shanxi Fenjiu, Yanghe, as well as Inner Mongolia Yili Industrial Group Co., Ltd. and Foshan Haitian Flavouring & Food Company Ltd. Off-exchange investors can also gain exposure through the ETF's feeder 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.
Data source: Shanghai and Shenzhen Stock Exchanges, as of July 10, 2026. Reminder: Recent market volatility may be significant. Short-term gains or losses do not indicate future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.
Risk Disclosure
The Huabao Food and Beverage ETF passively tracks the CSI Sub-Index for Food & Beverage Industry Theme Index, which has a base date of December 31, 2004, and was launched on April 11, 2012. Wind data shows the Sub-Index's total returns for the past five complete years were: 2025: -11.63%; 2024: -6.12%; 2023: -19.84%; 2022: -15.27%; 2021: -8.30%. The index's volatility for the past five complete years was: 2025: 13.51%; 2024: 37.10%; 2023: 20.98%; 2022: 29.22%; 2021: 34.04%. The index's constituent stocks are adjusted according to its compilation rules, and its historical back-tested performance does not predict future index performance. Individual stocks mentioned are listed for objective illustration as index constituents and do not constitute stock recommendations or represent the investment direction of the fund manager or the fund. Any information appearing herein (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice of any form to readers, and no liability is assumed 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 legal fund documents to understand the fund's risk-return characteristics and choose products suitable for their own risk tolerance. A fund's past performance 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 Huabao Food and Beverage ETF carries a risk rating of R3 (Medium Risk) and is suitable for Balanced (C3) and above investors. Suitability matching opinions are subject to sales institutions. Sales institutions (including the fund manager's direct sales channels and other sales agencies) assess the risk of the above funds according to relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. Suitability opinions from various sales institutions may not necessarily be consistent, and the risk rating results for fund products issued by fund sales institutions shall not be lower than the risk rating results made 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 make prudent fund investment choices based on their own investment objectives, horizon, experience, and risk tolerance, bearing 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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