The food and beverage sector continued its correction today (January 21st). Huabao Food & Beverage ETF (515710), which reflects the overall trend of the sector, weakened rapidly after opening and then fluctuated at low levels. Its intraday price fell over 1% at one point, and as of this writing, it is down 0.86%.
Regarding constituent stocks, baijiu stocks saw widespread declines. As of this writing, Jinhuixiao, Shuijingfang, and Jiuguijiu fell over 2%, while Gujing Gongjiu, Luzhou Laojiao, Yingjiagongjiu, and several others dropped over 1%, dragging down the sector's performance.
On the news front, the recent "GIFT (Global Intangible Finance Tracker) 2025" report released by British brand valuation consultancy Brand Finance ranked the top 100 companies globally by Intangible Value. Kweichow Moutai Co.,Ltd. secured the 49th position with an intangible value of $212 billion, ranking third among the five Chinese companies on the list, behind only TSMC and Tencent.
Within the beverage category, Kweichow Moutai Co.,Ltd.'s intangible value is notably significant, surpassing international giants like PepsiCo ($207 billion, 51st) and Anheuser-Busch InBev ($190 billion, 59th). Furthermore, Moutai's intangible value accounts for 85% of its enterprise value.
It is noteworthy that Kweichow Moutai Co.,Ltd. is the largest holding in Huabao Food & Beverage ETF (515710). According to the fund's periodic reports, as of the end of the third quarter of 2025, its portfolio weight was 14.89%.
From a valuation perspective, the food and beverage sector's valuation is at a historical low, suggesting the current period might be a favorable time for contrarian positioning in the sector. Data shows that as of yesterday's close (January 20th), the PE ratio of the SSE Food & Beverage Sub-index, which the Huabao Food & Beverage ETF (515710) tracks, was 19.83 times, sitting at a low point within the 3.33rd percentile over the past decade, highlighting its medium-to-long-term allocation appeal.
Looking ahead, Wanlian Securities indicated that in this cycle, the depth and duration of the decline in Moutai's wholesale price have exceeded those of the previous four cycles. Analyzing the purchasing power of Moutai's wholesale price relative to China's per capita disposable income suggests the price is nearing a bottom area, with limited downside potential. Based on channel inventory analysis, the destocking cycle for baijiu channels is expected to continue into the first half of 2026, with a potential inflection point possibly emerging in the second half of 2026. After five years of adjustment, the PE valuation of the baijiu industry has shrunk by nearly 70% from its peak, entering a bottoming phase. Additionally, the overall cash dividend capability of the baijiu industry remains strong, with low valuations coupled with high dividend yields providing substantial support for stock prices.
For one-click access to core assets in the food and beverage sector, focus on Huabao Food & Beverage ETF (515710). According to China Securities Index Co., Ltd., Huabao Food & Beverage ETF (515710) tracks the CSI Food & Beverage Sub-Industry Theme Index. Approximately 60% of its allocation is in leading premium and sub-premium baijiu stocks, while nearly 40% covers leading companies in sub-sectors like beverages, dairy, condiments, and beer. Its top ten holdings include industry leaders like Moutai, Wuliangye, Luzhou Laojiao, Fenjiu, Yanghe, Yili, and Haitian Flavouring. Off-exchange investors can also gain exposure to the sector's core assets through the Huabao Food & Beverage ETF Connect Fund (Class A: 012548 / Class C: 012549).
Image and data source: Shanghai and Shenzhen Stock Exchanges, etc., as of January 21, 2026.
Note: The subscription fee rate for Huabao Food & Beverage ETF Connect A is: Below 1 million yuan, 1%; 1 million yuan (inclusive) to 2 million yuan, 0.6%; 2 million yuan (inclusive) and above, 1000 yuan per transaction. The redemption fee rate is: Within 7 days, 1.5%; 7 days (inclusive) to 180 days, 0.5%; 180 days (inclusive) and above, 0%. The redemption fee rate for Huabao Food & Beverage ETF Connect C is: Within 7 days, 1.5%; 7 days (inclusive) and above, 0%. The sales service fee rate is 0.2%.
Risk Warning: Huabao Food & Beverage ETF passively tracks the CSI Food & Beverage Sub-Industry Theme 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 future index performance. Individual stocks mentioned are listed solely for the objective presentation of index constituents and are not stock recommendations, nor do they 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, and any form of expression) is for reference only. Investors must be responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any form to the reader, and Huabao Fund assumes no responsibility for any direct or indirect losses arising from the use of this content. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Summary," and other legal fund documents to understand the fund's risk-return characteristics and choose products suitable for 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 constitute a guarantee of the fund's performance. Based on the fund manager's assessment, the risk rating of Huabao Food & Beverage ETF is R3-Medium Risk, suitable for Balanced (C3) and above investors. Suitability matching opinions are subject to the sales institution. Sales institutions (including the fund manager's direct sales channels and other sales institutions) evaluate 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 determined 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 consideration factors. Investors should understand the fund's risk-return profile and cautiously select fund products based on their investment objectives, investment horizon, investment experience, and risk tolerance, bearing their own risks. 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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