The food and beverage sector experienced volatile gains today (April 1), with the Huabao Food and Beverage ETF (515710), which reflects the overall performance of the sector, rising as much as 1.45% during intraday trading. As of the latest update, the increase stood at 0.91%.
Among the constituent stocks, liquor shares led the gains. At the time of writing, Kuaijishan surged by the daily limit, while Yingjia Liquor and Gujing Gongjiu both rose more than 4%. Companies such as Jinshiyuan, Dongpeng Beverage, and Tsingtao Brewery also posted notable advances.
Dongxing Securities indicated that the snack food segment is expected to maintain steady growth throughout the year, particularly for companies that can leverage new sales channels, which may outperform the broader industry. Amid the recovery trend in mass-market dining, the frozen food industry is viewed favorably due to its earnings certainty. For the liquor sector, as Moutai's wholesale prices gradually stabilize, marginal improvements in demand in the second half of the year are anticipated to drive a broader recovery.
From a valuation perspective, the food and beverage sector remains at relatively low levels. Data shows that as of yesterday's (March 31) close, the price-to-earnings ratio of the Sub-Food Index, which the Huabao Food and Beverage ETF (515710) tracks, was 19.56 times, positioning it at the 3.13 percentile over the past decade, highlighting attractive medium- to long-term investment value.
Looking ahead, Oriental Securities emphasized continued optimism about the optimized supply structure in the food and beverage sector, particularly upstream segments with direct pricing power, such as agricultural processing, food ingredient suppliers, and animal husbandry. As raw material price increases are likely to persist, some companies may see earlier supply-side inflection points and earnings improvements. Recent relative outperformance in the sector is attributed to declining market risk appetite and the earnings reporting season. With expectations of a sector earnings bottom becoming clearer, stock prices may transition from a "rebound" to a "reversal."
For streamlined 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., the ETF tracks the CSI Sub-Industry Food and Beverage Theme Index, with leading liquor holdings accounting for nearly 60% of the portfolio. Top weighted stocks include Kweichow Moutai, Wuliangye, Luzhou Laojiao, Shanxi Fenjiu, Yanghe Brewery, as well as Yili Group and Haitian Flavouring. Off-exchange investors can also access core sector assets through the ETF's feeder funds (Class A: 012548; Class C: 012549).
Note: Fee details are available in each fund's legal documents.
Source: Shanghai and Shenzhen Stock Exchanges, data as of April 1, 2026. Reminder: Recent market volatility may be high; short-term gains or losses do not indicate future performance. Investors should make rational decisions based on their financial situation and risk tolerance, with careful attention to position and risk management.
Risk Disclosure: The Huabao Food and Beverage ETF passively tracks the CSI Sub-Industry Food and Beverage Theme Index, which has a base date of December 31, 2004, and was launched on April 11, 2012. The index's constituent stocks are adjusted according to its methodology, and its historical performance does not guarantee future results. Stocks mentioned are for illustrative purposes only and do not constitute recommendations or reflect the fund manager's investment strategy. All information provided is for reference, and investors are solely responsible for their investment decisions. No views, analyses, or forecasts herein constitute investment advice, and no liability is accepted for any direct or indirect losses. Investors should read the fund's legal documents to understand its risk-return profile and choose products matching their risk tolerance. Past performance does not predict future results, and other funds managed by the fund manager do not guarantee this fund's performance. As assessed by the fund manager, the Huabao Food and Beverage ETF carries a risk rating of R3 (medium risk), suitable for balanced (C3) and higher risk-tolerance investors. Suitability assessments are determined by sales institutions. Sales institutions evaluate funds per regulations; investors should note the fund manager's suitability opinion, which may differ among sellers, though seller ratings cannot be lower than the manager's. Risk descriptions in fund documents may vary due to different factors. Investors should understand fund risks and make informed decisions based on investment objectives, horizon, experience, and risk tolerance. CSRC registration does not guarantee fund value, prospects, or returns. Invest with caution.
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