The food and beverage sector experienced a volatile uptrend today (May 29). The Food and Beverage ETF Huabao (515710), which reflects the overall performance of the sector, dipped briefly at the open before rapidly climbing. At the time of writing, its on-exchange price has risen by 1.19%.
Among the constituent stocks, baijiu (Chinese liquor) companies led the gains. At the time of writing, Jiugui Liquor rose over 7%, Jiangsu King's Luck Brewery gained over 5%, while Kweichow Moutai Co.,Ltd., Sichuan Swellfun, and Anhui Golden Seed Winery also posted notable increases.
In related news, on May 27, renowned investor Duan Yongping donated 10,000 shares of Kweichow Moutai Co.,Ltd. stock to the Jiangxi Anfu County Charity Association to establish the Anfu County Duan Yongping Education Special Fund. The annual dividends and other derived income from these shares will serve as the fund's capital to support local educational development. This marks Duan Yongping's second donation of Moutai shares, following a previous donation of 10,000 shares to Jiangxi University of Water Resources and Electric Power in November 2025.
From a valuation perspective, the food and beverage sector remains at a low level. Data shows that as of yesterday's close (May 28), the price-to-earnings ratio of the CSI Food & Beverage Select Index, tracked by the Food and Beverage ETF Huabao (515710), stood at 20.53 times, positioned at the 10.98% percentile over the past decade, highlighting attractive long-term allocation value.
Tianfeng Securities noted that while current sector trading continues to be weighed down by sentiment, industry fundamentals are showing signs of marginal stabilization. The sector has entered a phase of low year-on-year sales comparables, and industry inventories are being cleared in an orderly manner. The off-season wholesale prices of leading distillers, represented by Moutai, have stabilized, strengthening their role in supporting the industry's pricing ecosystem and channel confidence. Promotional events for the 618 shopping festival across platforms have begun, with subsequent attention on platform subsidy levels and the wholesale price trends of premium spirits.
Guosen Securities stated that the bottoming characteristics of the baijiu industry are becoming clearer. While it is estimated that financial statement clean-up will still require some time, valuations may bottom out ahead of schedule in the second half of the year. In the medium term, the sector remains a high-quality asset with stable cash flows. Leading mass-market consumer companies are releasing positive signals, reinforcing market confidence. With expectations improving first, subsequent enhancements in consumer confidence are expected to further transmit to the fundamentals of the food and beverage industry. The firm advises paying attention to the full-year valuation and earnings recovery opportunities in the food and beverage sector and actively seeking entry points.
For one-stop allocation to core assets in the food and beverage sector, focus on the Food and Beverage ETF Huabao (515710). According to China Securities Index Co., Ltd., this ETF tracks the CSI Food & Beverage Select Index. Holdings in leading baijiu companies account for nearly 60% of the portfolio, with top ten constituents including Kweichow Moutai, Wuliangye, Luzhou Laojiao, Shanxi Xinghuacun Fen Wine Factory, Yanghe Brewery, Inner Mongolia Yili Industrial Group, and Foshan Haitian Flavouring & Food Co. Off-exchange investors can also access these core sector 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. Detailed fund fee structures are available in the fund's legal documents.
Source: Shanghai and Shenzhen Stock Exchanges, etc., as of May 29, 2026. Reminder: Recent market volatility may be significant; short-term gains or losses do not predict future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying high attention to position and risk management.
Risk Disclosure: The Food and Beverage ETF Huabao passively tracks the CSI Food & Beverage Select Index. The index's base date is December 31, 2004, and it was launched on April 11, 2012. The index's constituent stocks are adjusted according to its compilation rules, and its back-tested historical performance does not indicate future index performance. Stocks mentioned herein are listed solely for the objective presentation of index constituents and are not individual stock recommendations, nor do they represent the investment direction of the fund manager or the fund. Any 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. Furthermore, any views, analysis, 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, Key Facts Statement, and other fund 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 this fund's performance. Based on the fund manager's assessment, the Food and Beverage ETF Huabao carries a risk rating of 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) 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 fund product risk rating results issued by fund sales institutions shall not be lower than the risk rating results determined by the fund manager. There may be differences between the fund's risk-return characteristics as described in the fund contract and its risk rating due to different considerations. Investors should understand the fund's risk-return profile and make careful fund product selections 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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