The food and beverage sector experienced a slight pullback today (June 2nd). The HuaBao Food and Beverage ETF (515710), which reflects the overall trend of the sector, opened lower and continued to trade in a narrow range near its lows. As of this writing, its price was down 0.58%.
Among the constituent stocks, mass-market consumer goods led the declines, with some baijiu stocks also underperforming. As of this writing, Lotus Holdings fell over 6%, Sino-wealth fell over 4%, while Xin Dairy, Yiming Food, and Shede Spirits were among the top decliners, weighing on the sector.
In related news, on May 27th, the "Fortune" magazine released its 2026 list of China's Most Admired Companies. Kweichow Moutai Co.,Ltd. (SHA: 600519)
successfully retained its position on the All-Star list, becoming the only alcohol company to make the overall ranking. It was also selected for the Industry Star list, again as the sole alcohol company. This marks Moutai's 21st consecutive year on the list.
From a valuation perspective, the food and beverage sector remains at a relatively low level. Data shows that as of the close yesterday (June 1st), the price-to-earnings ratio of the SSE Consumer Staples Index, which the HuaBao Food and Beverage ETF (515710) tracks, was 21.07 times. This places it at a low point, around the 15.85th percentile over the past decade, highlighting its medium to long-term value proposition.
Looking ahead, Donghai Securities noted that the food and beverage sector has seen significant adjustments this year, with mutual fund allocations to the sector continuing to decline. Valuations are at a bottom, making it a potential haven for capital. Influenced by policies starting from May 2025 and against a backdrop of low comparables, consumption scenarios are expected to continue recovering. The fundamentals of the baijiu sector are at a low, with prices for premium brands stabilizing and sales momentum potentially improving marginally. The catering supply chain directly benefits and has been on a recovery path since the second half of last year, presenting investment opportunities as catering consumption rebounds from its lows.
For investors seeking to allocate to core assets in the food and beverage sector, the HuaBao Food and Beverage ETF (515710) warrants attention. According to China Securities Index Co., the ETF tracks the CSI Sub-Index for Food & Beverage Industry. Holdings in leading baijiu companies account for nearly 60% of the portfolio, with top holdings including Moutai, Wuliangye, Luzhou Laojiao, Fenjiu, Yanghe, Yili, and Haitian Flavouring. Off-exchange investors can also access these core assets through the ETF's feeder funds (Class A: 012548, Class C: 012549).
Note: When subscribing for or redeeming fund units, subscription/redemption agents may charge a commission of up to 0.5%, which includes fees charged by stock exchanges and registration institutions. For detailed fund fee information, please refer to the fund's legal documents.
Source: Shanghai and Shenzhen Stock Exchanges, etc., as of June 2, 2026. Reminder: Recent market volatility may be high. 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.
Risk Disclosure: The HuaBao Food and Beverage ETF passively tracks the CSI Sub-Index for Food & Beverage Industry, which has a base date of December 31, 2004, and was launched on April 11, 2012. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its back-tested historical performance does not predict its future performance. Individual stocks mentioned in this article 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. All information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any investment decisions they make independently. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any form 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 Key Facts Statement, and other legal fund documents to understand the fund's risk-return characteristics and select a product suitable for their own risk tolerance. The past performance of a fund 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. According to the fund manager's assessment, the HuaBao Food and Beverage ETF has 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 above funds according to relevant laws and regulations. Investors should pay timely attention to the suitability opinions issued by the fund manager. Suitability opinions from various 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 made by the fund manager. The description of the fund's risk-return characteristics in the fund contract and the fund's risk rating may differ due to different considerations. Investors should understand the fund's risk-return profile and choose fund products prudently based on their own investment objectives, time horizon, investment experience, and risk tolerance, bearing the risks themselves. The China Securities Regulatory Commission's registration of the above 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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