The food and beverage sector experienced a significant pullback today (May 28th). The Huabao Food & Beverage ETF (515710), which reflects the overall performance of the sector, opened lower and continued to weaken throughout the morning session, closing with a decline of 2.14%.
Constituent stocks, particularly those in the baijiu (Chinese liquor) segment, underperformed. By the close, JZJ (Jinzhongzi Liquor) fell 8%, and Jinhui Liquor dropped 6.6%. Kweichow Moutai Co.,Ltd., Wuliangye, Luzhou Laojiao, and Yanghe Co., Ltd. were also among the top decliners, weighing on the sector.
On the news front, Kweichow Moutai Co.,Ltd. announced on the evening of May 27th that it had completed a share repurchase totaling approximately 3 billion yuan. The company repurchased 2,188,614 shares, representing less than 0.18% of its total share capital. According to the company's plan, these shares were officially canceled on May 28th. Wang Li, General Manager of the Moutai Group, stated regarding subsequent market value management arrangements that Kweichow Moutai Co.,Ltd. will fully adhere to the fundamental principles of its development stage, continuously improve its market value management system, and enhance its market value management capabilities. "The company will scientifically utilize market value management tools based on actual operational development, capital expenditure needs, and industry competition dynamics, ensuring the continuity, stability, and sustainability of market value management work under the premise of sustainable development."
From a valuation perspective, the food and beverage sector remains at relatively low levels. Data shows that as of yesterday's close (May 27th), the price-to-earnings ratio of the CSI Food & Beverage Sub-Industry Index, tracked by the Huabao Food & Beverage ETF (515710), was 20.97 times, sitting at a low point in the 14.51st percentile over the past decade, highlighting the cost-effectiveness of medium- to long-term allocation.
Tianfeng Securities noted that while current sector trading continues to be weighed down by sentiment, industry fundamentals are showing marginal signs of stabilization. The industry has entered a phase of low base sales, with inventory being cleared in an orderly manner. Leading liquor companies, represented by Kweichow Moutai Co.,Ltd., have seen stable off-season wholesale prices, strengthening their role in supporting the industry's price ecosystem and channel confidence. Promotional events for the 618 shopping festival across various platforms have commenced, and subsequent attention should be paid to platform subsidy efforts and the wholesale price trends of premium liquor brands. Guohai Securities pointed out that the food and beverage sector is currently experiencing accelerated clearing of holdings. If institutional allocation styles shift subsequently, coupled with a consumption recovery, the sector could potentially see a dual trend of valuation repair and earnings realization. At the corporate level, leading premium liquor companies are actively engaging in market value management to boost shareholder confidence, while high-quality mass-market consumer goods leaders are providing strong support through cash dividends, indicating the medium- to long-term allocation value of sector leaders.
For one-stop allocation to core assets in the food and beverage sector, focus on the Huabao Food & Beverage ETF (515710). According to China Securities Index Co., Ltd., the Huabao Food & Beverage ETF (515710) tracks the CSI Food & Beverage Sub-Industry Index. Baijiu leaders account for nearly 60% of its holdings, with its top ten holdings including Kweichow Moutai Co.,Ltd., Wuliangye, Luzhou Laojiao, Shanxi Xinghuacun Fen Wine Factory Co.,Ltd., Yanghe Co., Ltd., Inner Mongolia Yili Industrial Group Co., Ltd., and Foshan Haitian Flavouring & Food Company Ltd. Off-exchange investors can also gain exposure to the sector's 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 & Shenzhen Stock Exchanges, etc., as of May 28, 2026. Reminder: Recent market volatility may be significant. Short-term gains or losses do not indicate 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.
Institutional views sourced from: Tianfeng Securities research report dated May 25th, "Consumer Sector May Experience Its Darkest Hour"; Guohai Securities industry research dated May 26th, "Baijiu Holdings Clearing Nearing End, Industry Inflection Point Approaches".
Risk Disclosure: The Huabao Food & Beverage ETF passively tracks the CSI Food & Beverage Sub-Industry Index. The index 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 predict future index performance. Individual stocks mentioned are listed solely for the objective presentation of index constituents and do not constitute stock recommendations or represent the investment direction of the fund manager or the fund. Any information appearing herein is for reference only. Investors are responsible for their own investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind 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 fund documents to understand the fund's risk-return characteristics and choose products suitable for their own risk tolerance. Past fund performance does not predict its future performance, 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 & 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 assess the risk of the aforementioned fund 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 be consistent, and the risk rating results issued by fund sales institutions for fund products shall not be lower than the risk rating results determined by the fund manager. Descriptions of fund risk-return characteristics in the fund contract and fund risk ratings may differ due to different considerations. Investors should understand the fund's risk-return profile and choose fund products cautiously based on their own 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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