The food and beverage sector saw an upward trend today (December 10) despite broader market weakness. The Food ETF (515710), which reflects the overall performance of the sector, briefly dipped at opening but quickly rebounded, with its intraday price rising as much as 0.68%. As of the latest update, it is up 0.34%.
Among the constituent stocks, liquor and beer companies led the gains. Xinhuo Weiye surged over 9%, Yanjing Brewery jumped more than 3%, while Jiugui Liquor, Jinzhongzi Liquor, and Zhujiang Brewery rose over 2%. Other notable gainers include Shuijingfang, Jinhuijiu, and Shede Spirits, all up more than 1%.
On the policy front, Guizhou Province released draft measures on December 9 to boost liquor sales. The proposal includes expanding online sales channels for Guizhou liquor through initiatives like consumer vouchers, as well as increasing its presence in large supermarket chains and transportation hubs such as highway service areas and gas station convenience stores.
Analysts note that the new policy aims to revitalize the industry through multi-channel and cross-sector integration, directly benefiting Guizhou-based liquor companies by opening up new sales avenues and stabilizing market expectations.
From a valuation perspective, the food and beverage sector is currently at historically low levels, presenting a favorable entry point. As of December 9, the price-to-earnings ratio of the Segmented Food Index, tracked by Food ETF (515710), stood at 19.93x, near a 10-year low percentile of 4.11%, highlighting its medium-to-long-term investment appeal.
Looking ahead, Xiangcai Securities suggests focusing on two investment themes: resilient industry leaders and companies actively expanding into new products, channels, and high-growth segments. Pacific Securities adds that liquor stocks have largely priced in pessimistic expectations, with valuations now at attractive historical lows, underscoring their long-term value.
For investors seeking exposure to the sector’s core assets, Food ETF (515710) offers a diversified portfolio, with approximately 60% allocated to premium and mid-tier liquor leaders and the remainder covering dairy, condiments, and beer segments. Top holdings include Kweichow Moutai, Wuliangye, Luzhou Laojiao, and Yili Group. The ETF’s feeder fund (Class A 012548 / Class C 012549) is also available for off-exchange investors.
Data source: Shanghai and Shenzhen stock exchanges, as of December 10, 2025.
Risk Disclosure: The Food ETF passively tracks the CSI Segmented Food & Beverage Industry Index, which was established on December 31, 2004, and launched on April 11, 2012. Constituent stocks are adjusted per index rules, and past performance does not guarantee future results. Mentioned stocks are for illustrative purposes only and do not constitute recommendations. Investors should carefully review fund documents and assess risk tolerance before investing. The fund is rated R3 (moderate risk) and suitable for balanced (C3) or higher-risk investors. Regulatory approval does not imply endorsement of the fund’s prospects.
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