China's Ministry of Industry and Information Technology and five other departments have jointly released an implementation plan to enhance the supply-demand alignment of consumer goods and further boost consumption. The plan aims to optimize the supply structure of consumer goods by 2027, creating three trillion-yuan consumption sectors and ten billion-yuan consumption hotspots while developing globally recognized, culturally rich premium products. By 2030, a high-quality development pattern featuring positive supply-demand interaction is expected to take shape, with consumption's contribution to economic growth steadily increasing.
Despite frequent consumption stimulus policies this year, valuations in the food and beverage sector remain historically low. As of November 26, the price-to-earnings ratio of the CSI Sub-Index for Food & Beverage tracked by Food ETF (515710) stood at 20.73 times, ranking at just the 8.22th percentile over the past decade, highlighting attractive long-term investment value. Continued policy support may drive sector valuation recovery.
Capital inflows suggest growing investor interest. Exchange data shows Food ETF (515710) attracted net inflows of 11.85 million yuan over five trading days, with cumulative 10-day inflows reaching 61.31 million yuan.
Dongfang Securities forecasts the food and beverage sector will likely trend upward from 2026, supported by valuation recovery transitioning to earnings-driven growth. Sector fundamentals may reach an inflection point, with catering supply chains and beer segments showing signs of bottoming out in 2025, while liquor companies could see narrowing revenue declines by Q1 2026.
Xiangcai Securities notes current sector valuations remain relatively low, recommending focus on two investment themes: 1) resilient industry leaders with stable demand, and 2) innovative companies expanding into new products, channels and high-growth segments.
Food ETF (515710) provides concentrated exposure to sector leaders, with about 60% allocation to premium liquor stocks and 40% to dairy, condiment and beer sub-sectors. Top holdings include industry giants like Kweichow Moutai, Wuliangye, Luzhou Laojiao, Shanxi Fenjiu, Yanghe Brewery, Yili Industrial and Haitian Flavouring. The ETF's feeder fund (Class A 012548/Class C 012549) offers alternative access for non-exchange investors.
Data source: Shanghai/Shenzhen Stock Exchanges, as of November 26, 2025.
Risk Disclosure: Food ETF tracks the CSI Sub-Index for Food & Beverage Industry (Base Date: December 31, 2004; Launch Date: April 11, 2012). Index composition may change per methodology. Historical performance doesn't guarantee future results. Constituent examples aren't recommendations. Investors should review fund documents and assess risk tolerance before investing. The fund carries R3-medium risk rating, suitable for balanced (C3) or higher risk-profile investors per manager assessment. Sales channels may apply different suitability assessments. Regulatory approval doesn't constitute investment endorsement.
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