The food and beverage (F&B) sector saw an upward trend today (December 19), with the Huabao Food & Beverage ETF (515710), reflecting the overall performance of the sector, rising 1.18% intraday after opening.

Among constituent stocks, consumer staples led gains, while some baijiu stocks also performed strongly. As of writing, Angel Yeast surged over 5%, while Yiming Food, New Hope Dairy, and Qianhe Condiments rose more than 4%. Taoli Bread and Yingjia Liquor followed with gains exceeding 3%, while Kweichow Moutai, Shanxi Fenjiu, and Yanghe Brewery also edged higher.

Recent news highlights the "Moutai Sauce Aroma · Friends Sharing Week" campaign, which drove strong consumer and cultural engagement both online and offline. During the 11-day event, Moutai’s sauce-flavored liquor division achieved remarkable results, with total online sales exceeding 145 million yuan and exposure surpassing 531 million views. Core products such as Moutai 1935, Moutai Prince Liquor (Golden Prince), and Kweichow Daqu Liquor (70s) saw explosive growth on JD.com’s Moutai flagship store, with year-on-year sales increases of 840%, 495%, and 415%, respectively.

Analysts note that this sales surge was not accidental but the result of strategic product planning and precise operations. By controlling daily promotional strategies, the event effectively unlocked market potential across different price segments, catering to diverse consumer needs while reinforcing mass-market demand and elevating premium product value—showcasing the brand’s strong product-driven growth.

From a valuation perspective, the F&B sector remains at historically low levels, presenting a potential opportunity for early positioning. As of yesterday’s close (December 18), the Huabao Food & Beverage ETF’s (515710) underlying index, the CSI Sub-Industry Food Index, had a P/E ratio of 20.25x, near a 10-year low at the 6.46% percentile, highlighting attractive long-term value.

Looking ahead, Guosen Securities suggests that while baijiu fundamentals remain in a bottoming phase, low valuations and positioning, coupled with full pricing-in of short-term pressures, could catalyze recovery from both supply and demand signals. High-quality companies with pricing power and regional influence may capture greater growth.

Shenwan Hongyuan Securities adds that baijiu demand recovery may hinge on domestic consumption stimulus policies, with channel inventory, wholesale prices, and earnings lagging behind demand improvements. However, stock performance could rebound ahead of fundamentals, driven by inventory and price stabilization. Leading firms enhancing shareholder returns further underscore the sector’s appeal.

For exposure to F&B sector leaders, consider the Huabao Food & Beverage ETF (515710), which tracks the CSI Sub-Industry Food & Beverage Index, allocating ~60% to premium and mid-premium baijiu leaders and ~40% to dairy, condiments, 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 19, 2025.

Risk Disclosure: The Huabao Food & Beverage ETF passively tracks the CSI Sub-Industry Food & Beverage Index (base date: December 31, 2004; launch date: April 11, 2012). Index constituents may change per rules, and past performance does not guarantee future results. Mentioned stocks are for illustrative purposes only and do not constitute recommendations. Investors should review fund documents and assess risk suitability. The fund is rated R3 (moderate risk) and suits balanced (C3) or higher-risk investors.

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