The food and beverage sector weakened in afternoon trading on December 11, with the Food ETF (515710), tracking the sector's performance, declining 0.34% intraday.
Among constituent stocks, consumer staple stocks led losses, while some liquor stocks underperformed. Yangyuan Beverage plunged over 5%, with Jiugui Liquor and Sanquan Foods dropping more than 2%, dragging down the sector. However, leading liquor stocks like Kweichow Moutai and Wuliangye Yibin edged higher against the market trend.
Despite recent pullbacks, significant capital has flowed into the sector via the Food ETF (515710), accumulating over 96 million yuan in net inflows during the past five trading days.
Notably, Kweichow Moutai and Wuliangye announced interim dividends on December 10, totaling approximately 40 billion yuan. Kweichow Moutai will distribute 23.957 yuan per share (tax-inclusive), amounting to 30.01 billion yuan, while Wuliangye plans to pay 25.78 yuan per 10 shares, totaling 10.07 billion yuan. Both companies are the top-weighted holdings in the Food ETF (515710), accounting for 14.89% and 14.65% of the fund's portfolio as of Q3 2025.
Valuation-wise, the sector remains historically low, presenting a potential buying opportunity. The SSE Food and Beverage Index, tracked by the Food ETF (515710), had a P/E ratio of 19.99x as of December 10, near a 10-year low at the 4.7% percentile, highlighting its long-term value.
CITIC Securities noted that while short-term pressure persists due to Moutai's price adjustments, policy catalysts in December could boost consumption. Liquor stocks show clear bottoming signals, while consumer staples offer structural opportunities in niche segments.
Xiangcai Securities emphasized the sector's undervaluation, recommending focus on resilient industry leaders and innovative firms capturing high-growth markets.
For exposure to core food and beverage assets, investors can consider the Food ETF (515710), which tracks the CSI Food and Beverage Index, with 60% allocation to premium liquor stocks and 40% to dairy, condiments, and beer leaders. Top holdings include Kweichow Moutai, Wuliangye, Luzhou Laojiao, and Yili Group.
(Source: SSE/SZSE data as of December 11, 2025)
Risk Disclosure: The Food ETF passively tracks the CSI Food and Beverage Index, whose composition may change. Past performance does not indicate future results. This content does not constitute investment advice. Investors should assess risks independently and refer to fund documents before investing.
Comments