The food and beverage sector continued its correction today (May 14). The Huabao Food and Beverage ETF (515710), which reflects the overall trend of the sector, briefly rose at the open before retreating. As of this report, its intraday price was down 0.56%.
Both baijiu (Chinese spirits) and consumer staples underperformed. As of this report, Lianhua Holdings plunged over 3%, while Kouzijiao, Shunxin Agriculture, and others fell more than 2%. Laobaigan Liquor, Shuijingfang, Zhujiang Brewery, and others declined over 1%, dragging down the sector.
In recent news, a forum for Wuliangye Yibin Co.,Ltd. distributors in Gansu and Shandong provinces was held in Jinan. The meeting revealed that sales data shows Wuliangye has achieved consecutive years of growth in the Shandong market, with a compound annual growth rate exceeding 20% from 2019 to 2025. Notably, its sales turnover for Q1 2026 reached a historical high, surging 17% year-over-year compared to 2024. From a channel development perspective, the number of purchasing terminals grew 48% year-over-year for the same period, the total volume of terminal purchases jumped 108%, and the number of banquet events soared 220%.
Analysis points out that Wuliangye's record-high Q1 sales turnover in Shandong, coupled with the significant increases in terminal purchases and banquet events, demonstrates robust demand and strong channel expansion. This data reflects the solid regional leadership position of leading baijiu companies, with banquet and mass consumption scenes accelerating their recovery.
From a valuation perspective, the food and beverage sector remains at a low level. Data shows that as of yesterday's close (May 13), the price-to-earnings ratio of the CSI Food and Beverage Sub-Industry Index, tracked by the Huabao Food and Beverage ETF (515710), stood at 21.76 times. This places it at the 18.82% percentile over the past decade, highlighting the attractive medium-to-long-term investment value.
Looking ahead, CITIC Securities notes that baijiu companies are successively entering a phase of performance clearing and recovery, albeit at different paces. In Q1 2026, Kweichow Moutai and Wuliangye Yibin Co.,Ltd. have already achieved positive revenue and profit growth. Furthermore, leading distillers like Luzhou Laojiao and Shanxi Xinghuacun Fen Wine Factory boast dividend yields above 4%. The firm remains firmly optimistic about the investment opportunity presented by what it views as the significant cyclical bottom for baijiu in 2026. It currently recommends focusing on leading baijiu companies and those showing early signs of performance reversal with relatively high dividend yields.
For one-stop exposure to core assets in the food and beverage sector, the Huabao Food and Beverage ETF (515710) is a key focus. According to China Securities Index Co., Ltd., the ETF tracks the CSI Food and Beverage Sub-Industry Index, with leading baijiu holdings accounting for nearly 60% of its portfolio. Its top ten holdings include industry giants such as Kweichow Moutai, Wuliangye Yibin Co.,Ltd., Luzhou Laojiao, Shanxi Xinghuacun Fen Wine Factory, Yanghe Brewery, Yili, and Haitian Flavouring. Off-exchange investors can also access these core assets through the ETF's feeder funds (Class A: 012548; Class C: 012549).
Note: When subscribing for or redeeming fund shares, subscription/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, data as of May 14, 2026. Reminder: Recent market volatility may be significant. Short-term price movements do not predict 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 Food and Beverage Sub-Industry Index. The index's base date is December 31, 2004, and it was launched on April 11, 2012. The index constituents are adjusted according to its compilation rules, and its back-tested historical performance does not indicate its future performance. Stocks mentioned herein are listed solely as objective examples of index constituents and do not constitute individual stock recommendations or represent the investment direction of the fund manager or the fund. All information appearing in this article (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions they make. Furthermore, any views, analyses, or predictions in this article do not constitute investment advice of any form to the reader, 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 Summary, and other legal documents to understand the fund's risk-return characteristics and select products suitable for their own risk tolerance. A fund's past performance does not predict its future results, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. Based on the fund manager's assessment, the Huabao Food and Beverage ETF carries a risk rating of R3 (Medium Risk) and is suitable for investors with a Balanced (C3) or higher risk profile. Suitability matching opinions are subject to the sales institution. Sales institutions (including the fund manager's direct sales channels and other sales institutions) assess the risk of the aforementioned funds according to relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. Suitability opinions from different sales institutions may not necessarily be consistent, and the risk rating results for fund products issued by sales institutions shall not be lower than those issued by the fund manager. The description of a 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 carefully select fund products based on their investment objectives, horizon, experience, and risk tolerance, bearing the associated risks themselves. The China Securities Regulatory Commission's registration of the aforementioned 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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