The food and beverage sector saw continuous upward momentum after the market opened today (March 6). The Huabao Food and Beverage ETF (515710), which reflects the overall performance of the sector, fluctuated upwards. As of the latest update, its on-market price increased by 1.09%.
In terms of constituent stocks, consumer staple stocks led the gains, with some leading baijiu producers also performing notably well. By the latest update, New Hope Dairy surged over 6%, while Adisseo, Angel Yeast, and Yanjin Shop rose more than 4%. Shanxi Fenjiu, Luzhou Laojiao, and Yanghe Brewery also ranked among the top gainers.
On the news front, according to channel feedback, baijiu sales during the 2026 Spring Festival generally declined by 10%-20%, showing marginal improvement, with overall performance aligning with previous expectations. By brand, the trend of concentration toward leading players became more evident. Moutai and Wuliangye, leveraging their brand strength, continued to absorb demand from other brands in the industry during the adjustment period, widening the sales gap with second- and third-tier brands.
Aijian Securities pointed out that, overall, signals indicating the bottoming out of leading companies' operations are becoming clearer. Moutai, benefiting from the combined effects of channel reforms and price system adjustments, has taken the lead in entering a recovery phase. Market expectations for the sector as a whole have been sufficiently revised downward. Subsequent improvements, such as stabilized wholesale prices and inventory reduction, are expected to continue catalyzing sector performance.
From a valuation perspective, the food and beverage sector remains at a low valuation level. Data shows that as of yesterday's (March 5) market close, the price-to-earnings ratio of the Segmented Food Index, tracked by the Huabao Food and Beverage ETF (515710), stood at 19.23 times, near the 1.57th percentile over the past decade, highlighting its medium- to long-term investment appeal.
Looking ahead, Aijian Securities noted that for the baijiu segment, as policy pressures gradually subside and consumption-boosting policies take effect, demand is expected to recover gradually. The industry is currently at a low valuation with fully priced-in pessimistic expectations. It is anticipated that the direction of industry consolidation will become clearer, with the bottom becoming more evident. In the long term, during the industry's adjustment phase, high-quality leading companies with strong earnings certainty are preferred. It is advisable to focus on baijiu leaders with relatively stable wholesale prices, solid competitive moats, and attractive dividend yields.
Note: When subscribing for or redeeming fund units, subscription and redemption agents may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges and registration institutions. For detailed fund fee rates, please refer to the fund’s legal documents.
Source: Shanghai and Shenzhen Stock Exchanges, as of March 6, 2026. Reminder: Recent market fluctuations may be significant; short-term gains or losses do not indicate future performance. Investors should make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position and risk management.
Risk Warning: The Huabao Food and Beverage ETF passively tracks the CSI Segmented Food and Beverage Industry Theme Index, 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 historical backtested performance does not indicate future index performance. Individual stocks mentioned herein are listed for objective illustration as index constituents and are not recommendations, nor do they represent the investment direction of the fund manager or the fund. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice of any form to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. Investors should carefully read the fund’s legal documents, such as the Fund Contract, Prospectus, and Fund Product Key Facts Statement, to understand the fund’s risk-return characteristics and choose products that match their risk tolerance. Past performance of the fund does not predict future performance, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. Based on the fund manager’s assessment, the Huabao Food and Beverage ETF has a risk rating of R3—Medium Risk, suitable for investors with a balanced (C3) or higher risk profile. Suitability matching opinions are subject to the sales institution. Sales institutions (including the fund manager’s direct sales channels and other sales institutions) evaluate the above fund’s risk in accordance with relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. Suitability opinions from different sales institutions may not necessarily be consistent, and the risk rating results issued by fund sales institutions shall not be lower than those assessed by the fund manager. The fund’s risk-return characteristics as described in the fund contract may differ from its risk rating due to different consideration factors. Investors should understand the fund’s risk-return profile and make prudent fund investment decisions based on their investment objectives, horizon, experience, and risk tolerance, bearing the risks themselves. The China Securities Regulatory Commission’s registration of this fund does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. Fund investment involves risks.
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