ZJLD (06979) rose more than 5%. At the time of writing, the stock was up 4.89% to HK$9.44, with a turnover of HK$62.6241 million.

On the news front, China Securities pointed out that on January 29, the baijiu sector experienced a historic surge, with 20 stocks hitting the daily limit-up and the sector index rising 9.79%. Kweichow Moutai saw an 8.61% gain, primarily driven by better-than-expected distribution channel sales and wholesale prices for Moutai, recognition of its reforms, as well as eased property policies and expectations for a positive PPI.

On the 30th, Moutai's wholesale prices continued to increase, with prices for Feitian, vintage, and zodiac series wines all trending higher, indicating robust channel sales.

It is projected that the industry will hit a cyclical bottom by 2026, with leading companies expected to gain market share. The institution is optimistic that the baijiu sector may present a once-in-a-decade investment opportunity around the Spring Festival period.

A Tianfeng Securities research report stated that the current downcycle for the baijiu sector has lasted about five years, and the sector's current valuation and institutional positioning are at historically low levels.

While the overall market sentiment towards the baijiu sector remains pessimistic, a fundamental recovery for the industry still requires support from a rebound in external macroeconomic demand.

However, in the current stock market environment, share prices have the potential to bottom out ahead of a fundamental recovery.