The food and beverage sector continued its upward trajectory today. The Food ETF (515710), which tracks the sector's overall performance, traded in positive territory throughout the session, with its intraday price rising as much as 1.28% before closing 0.48% higher—marking its fourth consecutive daily gain.
Among constituent stocks, consumer staple names led the advance, while some baijiu leaders also posted solid gains. By the close, Tianwei Food surged 4.18%, with Yunnan Energy Investment, Yanjing Brewery, and Angel Yeast all climbing over 2%. Kweichow Moutai, Luzhou Laojiao, and Inner Mongolia Yili Industrial Group also ended modestly higher.
Notably, renowned investor Duan Yongping reiterated his bullish stance on Kweichow Moutai during an investment talk show hosted by Fang Sanwen. "Moutai will definitely recover, though the timing remains uncertain," Duan stated, emphasizing that the liquor giant's long-term value outweighs macroeconomic concerns. He disclosed making two purchases of Moutai shares this year and plans to continue buying on dips when spare cash becomes available. Kweichow Moutai currently represents Food ETF (515710)'s largest holding at 14.89% of portfolio weight as of Q3 2025.
Valuation metrics suggest the sector may present a favorable left-side accumulation opportunity, with the SSE Sub-Index of Food & Beverage trading at a P/E ratio of 21.21x as of November 11—hovering near decade lows at the 11.74th percentile.
Looking ahead, Everbright Securities notes the food & beverage sector has undergone five years of adjustment, with baijiu names particularly pressured since May 2025. Interim reports from July-August showed most distilleries actively managed operations to alleviate pressure, boosting market sentiment. The CITIC Baijiu Index now trades below 20x P/E with average dividend yields around 3.5%, suggesting value territory. Given substantially lowered growth expectations, the firm recommends monitoring left-side entry windows before the industry inflection point.
China Galaxy Securities observes October's market rotation benefited food & beverage stocks, with performance correlating positively with Q3 results—preprocessed foods and health supplements outperformed amid sequential earnings improvement, while baijiu stocks lagged due to balance sheet cleanups. For Q4, the broker suggests focusing on new consumption themes and undervalued cyclical plays with supply-side adjustments.
For one-click exposure to sector leaders, Food ETF (515710) tracks the CSI SSE Sub-Index of Food & Beverage, allocating ~60% to premium baijiu leaders and ~40% to beverage, dairy, condiment, and beer segment leaders. Top holdings include Kweichow Moutai, Wuliangye, Luzhou Laojiao, Shanxi Xinghuacun Fen Wine, Yanghe Brewery, Yili, and Haitian Flavouring. The ETF's feeder fund (A-share: 012548; C-share: 012549) provides alternative access.
(Data sources: SSE/SZSE, as of November 12, 2025)
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