The food and beverage sector defied the broader market downturn today (October 12), closing in positive territory.
By the close, Swellfun Group and Angel Yeast gained more than 3%, while Kweichow Moutai Co.,Ltd., Pearl River Brewery, Jinshiyuan, and Yanjing Brewery each rose over 1%. Kweichow Moutai Co.,Ltd.'s closing price surpassed that of Lianxun Instruments, allowing it to reclaim the title of "Stock King." The underlying index of the Food and Beverage ETF Huabao (515710), the Sub-Industry Food Index, closed up 0.32%.
Note: As of October 9, 2026, the weights of Swellfun Group, Angel Yeast, Kweichow Moutai Co.,Ltd., Pearl River Brewery, Jinshiyuan, and Yanjing Brewery in the Sub-Industry Food Index were 0.49%, 2.18%, 15.19%, 0.36%, 2.01%, and 1.48%, respectively.
On the news front, sales during the peak baijiu season showed notable divergence. Data indicates that overall sell-through during the Mid-Autumn and National Day baijiu peak season declined approximately 10% year-on-year, with clear structural divergence: high-end Moutai wholesale prices remained firm (1,720–1,750 yuan) with low inventory, and the 1935 banquet product saw impressive demand; Wuliangye's price floor was stable but business-related sell-through was weak; regional distillers such as Jinshiyuan and Yingjia maintained steady performance supported by their local banquet base, with relatively healthy channel inventories.
Some institutional research reports note that the baijiu industry is shifting comprehensively from B-end channel stuffing to C-end bottle-opening incentives, with a genuine consumption orientation accelerating inventory depletion and potentially improving the profit quality of distillers. The reports suggest that if Moutai's wholesale price rebounds more than expected, it could drive the sector's valuation to recover above 25x; among regional distillers, those with high dividend yields and fundamentals stabilizing first offer both earnings elasticity and dividend appeal.
From a valuation perspective, the food and beverage sector currently remains at low valuation levels. Data shows that as of the close of the previous trading day (October 9), the price-to-earnings ratio of the Sub-Industry Food Index, the underlying index of the Food and Beverage ETF Huabao (515710), was 20.38x, sitting at a low percentile of 12.92% over the past 10 years (data source: Wind), highlighting compelling mid-to-long-term allocation value.
Looking ahead, CITIC Securities stated that the baijiu sector is bottoming out and clearing, with distillers comprehensively pivoting toward C-end consumers. Currently, many leading distillers have dividend yields above 4%, and combined with the possibility that Moutai's wholesale price could exceed expectations in the second half of the year—potentially catalyzing a valuation recovery above 25x—this could lead a reshaping of the sector's valuation. The firm currently recommends baijiu leaders and targets that are the first to clear inventory and reverse performance with higher dividend yields, and suggests paying attention to certain baijiu leaders as well as regional distillers with performance foundations and high dividend yields.
*BOC International pointed out that consumption during the double festival period showed internal structural divergence, with experiential consumption outperforming goods-based consumption. Baijiu terminal sell-through was weak, and the industry remains in a bottom-finding cycle. The sector currently offers relatively favorable odds, with defensive attributes standing out, and it may be advisable to favor mass-market leaders with recovering fundamentals and high dividend yields.
*For one-click allocation to the core assets of the food and beverage sector, focus on the Food and Beverage ETF Huabao (515710). According to China Securities Index Co. statistics, the Food and Beverage ETF Huabao (515710) tracks the CSI Sub-Industry Food and Beverage Industry Theme Index, with baijiu leaders accounting for nearly 50% of holdings. Off-exchange investors can also gain exposure to the core assets of the food and beverage sector through the Food and Beverage ETF Feeder Fund (Class A 012548, Class C 012549).
Data source: Shanghai and Shenzhen Stock Exchanges, etc., as of October 12, 2026. Note: When investors subscribe to or redeem fund shares, subscription and redemption agent brokers may charge a commission of no more than 0.5%, which includes fees charged by stock exchanges, registration institutions, and other relevant parties. For fund fee rates, please refer to the fund's legal documents. Institutional views referenced from: CITIC Securities October 11 securities research report "Double Festival Sell-Through Divergence, Focus on Q3 Earnings Improvement Directions"; BOC International October 12 food and beverage industry weekly report "Internal Structural Divergence in Double Festival Consumption, Sector Currently Offers Favorable Odds."
Risk Disclosure: The Food and Beverage ETF Huabao passively tracks the CSI Sub-Industry Food and Beverage Industry Theme Index, whose base date is December 31, 2004, and which was launched on April 11, 2012. The constituent stocks of the index are adjusted in a timely manner according to the index compilation rules, and its back-tested historical performance does not predict the index's future performance. The individual stocks mentioned herein are merely objective examples of index constituents and do not constitute recommendations for any individual stocks, nor do they represent the fund manager or the fund's investment direction. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for their own investment decisions. In addition, any views, analyses, and forecasts in this article do not constitute any form of investment advice to readers, and the company shall not bear any responsibility for direct or indirect losses arising from the use of the content herein. Investors should carefully read the fund's legal documents such as the "Fund Contract," "Prospectus," and "Fund Product Summary" to understand the fund's risk-return characteristics and choose products suitable for their own risk tolerance. Past performance of a fund does not predict its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. According to the fund manager's assessment, the risk level of the Food and Beverage ETF Huabao is R3-Medium Risk, suitable for balanced-type (C3) and above investors; please refer to the sales institution for the suitability matching opinion. Sales institutions (including the fund manager's direct sales institution and other sales institutions) conduct risk assessments of the above funds in accordance with relevant laws and regulations, and investors should promptly pay attention to the suitability opinions issued by the fund manager. The suitability opinions of various sales institutions are not necessarily consistent, and the fund product risk level assessment results issued by fund sales institutions shall not be lower than the risk level assessment results made by the fund manager. The fund contract's provisions regarding fund risk-return characteristics and fund risk levels may differ due to different factors considered. Investors should understand the fund's risk-return situation, carefully select fund products in light of their own investment objectives, time horizon, investment experience, and risk tolerance, and bear risks themselves. The registration of the above funds by the China Securities Regulatory Commission does not indicate that it makes any substantive judgment or guarantee regarding the investment value, market prospects, or returns of the funds. Fund investment involves risk. MACD golden cross signals have formed; these stocks are performing well!
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