The food and beverage sector continued its upward trend today (March 25). HuaBao Fund's Food and Beverage ETF (515710), which reflects the overall performance of the sector, experienced volatile gains after opening. As of the latest update, its on-market price increased by 0.74%.
Among constituent stocks, mass-market consumer goods led the gains. By the latest update, Lotus Holding surged over 4%, while Jinhe Industrial, Yangyuan Beverage, Yanjin Shop, and several others rose more than 3%. Some leading baijiu producers also performed well, with Kweichow Moutai and Wuliangye showing modest gains.
Guojin Securities expressed optimism about the current allocation value of the baijiu sector, noting that under low expectations, the probability of success is considerable—especially during periods when market sentiment is affected by external risk events. Expectations are leading the way, and even during the off-season after holidays, there is potential for top-down catalysts. As "anti-involution" policies continue to be implemented, corporate ROE is expected to improve, leading to increased corporate spending on hospitality and other areas. With improving household income expectations, an industry inflection point is gradually approaching.
From a valuation perspective, the food and beverage sector remains at a low level. Data shows that as of yesterday's close (March 24), the price-to-earnings ratio of the Sub-Food Index, tracked by HuaBao's Food and Beverage ETF (515710), stood at 19.09 times, near the 1.37% percentile over the past decade, highlighting its medium- to long-term allocation appeal.
Looking ahead, Aijian Securities stated that as policy pressures gradually ease, demand is expected to recover with the support of consumption-boosting policies. The industry is currently at a low valuation level with fully priced-in pessimistic expectations. It is anticipated that the direction of industry consolidation will become clearer, and the bottom will be more evident. Efforts to control volume and stabilize prices are driving wholesale price recoveries, with stable post-holiday off-season prices for standard products signaling positivity. Leading liquor companies are increasing dividend payout ratios, making dividend yields attractive for allocation. In the long term, high-quality leading companies with strong earnings certainty are preferred during the industry's adjustment period.
To efficiently allocate core assets in the food and beverage sector, investors may consider HuaBao's Food and Beverage ETF (515710). According to China Securities Index Co., this ETF tracks the CSI Sub-Index for the Food and Beverage Industry Theme, with nearly 60% of its holdings in leading baijiu producers. Top-weighted stocks include Kweichow Moutai, Wuliangye, Luzhou Laojiao, Shanxi Xinghuacun Fen Wine, Yanghe Brewery, Yili Industrial, and Haitian Flavouring. Off-market investors can also participate through HuaBao's Food and Beverage ETF Link Fund (Class A: 012548 / Class C: 012549).
Note: When subscribing for or redeeming fund units, brokerage agents may charge a commission of up to 0.5%, which includes fees levied by stock exchanges and registration institutions. For detailed fund fee structures, refer to the fund’s legal documents.
Source: SSE and SZSE, as of March 25, 2026. Reminder: Recent market fluctuations may be significant, and short-term gains or losses do not indicate future performance. Investors should make rational investment decisions based on their financial situation and risk tolerance, paying close attention to position and risk management.
Risk Disclosure: HuaBao's Food and Beverage ETF passively tracks the CSI Sub-Index for the Food and Beverage Industry Theme, 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 rules, and its historical performance does not predict future results. Individual stocks mentioned are listed for illustrative purposes only and do not constitute recommendations or reflect the fund’s investment direction. All information provided is for reference only, and investors are solely responsible for their investment decisions. No views, analyses, or forecasts constitute investment advice, and no liability is accepted for losses arising from the use of this content. Investors should carefully read the fund’s legal documents to understand its risk-return profile and choose products matching their risk tolerance. Past performance does not guarantee future results, and the performance of other funds managed by the fund manager does not indicate this fund’s future performance. Based on the fund manager’s assessment, HuaBao's Food and Beverage ETF carries a risk rating of R3 (medium risk) and is suitable for balanced (C3) or higher risk-tolerance investors. Suitability opinions may vary among sales institutions. Sales agents evaluate funds per relevant regulations, and investors should consider the fund manager’s suitability assessment. Fund contracts and sales institutions may assess risk levels differently. Investors should understand a fund’s risk-return characteristics and make independent decisions. CSRC registration does not guarantee a fund’s value or returns. Invest with caution.
A golden cross signal has formed in MACD indicators, indicating favorable momentum for certain stocks.
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