Policy Tailwinds Boost Food ETF (515710) to Turn Positive Intraday; Institutions Advise Seizing Pre-Holiday Liquor Sector Recovery

The food and beverage sector experienced volatile consolidation today (December 17), with the Food ETF (515710), which tracks the overall performance of the sector, briefly dipping at opening before rebounding into positive territory. As of press time, the ETF's price rose 0.34%.

Among constituent stocks, consumer staple stocks led gains. By press time, Mengniu Dairy surged over 5%, Lianhua Holdings climbed more than 4%, while Angel Yeast, New Hope Dairy, and Dongpeng Beverage all gained over 2%.

On the policy front, officials from the Central Financial and Economic Affairs Commission emphasized that expanding domestic demand will be next year's top priority, requiring coordinated efforts on both supply and demand sides to boost consumption while balancing investment expansion. Additionally, measures will target both supply and demand to stabilize the property market—controlling new supply while revitalizing inventory on the supply side, and implementing targeted policies to unleash rigid and upgrading housing demand.

Notably, the food and beverage sector is a critical component of broader consumption. With sustained policy support for domestic demand expansion, the sector stands to benefit significantly.

Valuation metrics suggest the sector is historically undervalued, presenting a potential left-side entry opportunity. As of yesterday's close (December 16), the Segmented Food Index tracked by Food ETF (515710) showed a P/E ratio of 20.21x—at just the 6.46th percentile over the past decade—highlighting compelling long-term value.

Looking ahead, Guosen Securities notes that while liquor sector fundamentals remain in left-side bottoming, depressed valuations and positioning have largely priced in near-term pressures. Positive signals from both supply and demand could catalyze recovery, making this an opportune phase for strategic positioning, especially in premium brands with regional pricing power.

Huachuang Securities adds that Kweichow Moutai's price stability sets the industry's ceiling while Wuliangye's performance dictates consolidation pace. Post-earnings clarity from these leaders should repair market sentiment, suggesting investors capitalize on pre-holiday liquor sector recovery. The next six months may offer a window for absolute return strategies in liquor cycles.

For streamlined exposure to core F&B assets, Food ETF (515710) merits attention. Tracking the CSI Segmented Food & Beverage Industry Index, it allocates ~60% to premium/upper-mid liquor leaders and ~40% to beverage, dairy, condiment, and beer segment leaders. Top holdings include Kweichow Moutai, Wuliangye, Luzhou Laojiao, Shanxi Fenjiu, Yanghe Brewery, Yili, and Haitian Flavouring. Off-exchange investors can access the sector via the ETF's feeder funds (Class A 012548/Class C 012549).

Data source: SSE/SZSE, as of December 17, 2025.

Risk disclosure: The ETF passively tracks an index with base date 12/31/2004, launched 4/11/2012. Index composition changes per rules; past performance doesn't guarantee future results. Constituent stock mentions are for illustrative purposes only, not recommendations. All information herein is for reference only—investors assume full responsibility for independent decisions. No content constitutes investment advice, and fund managers disclaim liability for direct/indirect losses. Investors must review fund legal documents to assess risk-return profiles and match products with personal risk tolerance. Historical performance doesn't predict future results, and other fund performance doesn't guarantee this ETF's returns. The manager rates this ETF as R3-medium risk, suitable for balanced (C3) or higher investors per distributor assessments. Distributors' risk evaluations may differ, though not below the manager's rating. Fund contract risk classifications may vary due to different methodologies. Investors should independently evaluate risk-return characteristics. CSRC registration doesn't imply endorsement of fund quality or returns. Invest with caution.