Food stocks in Hong Kong experienced a collective downturn. As of writing, Yihai International (01579) fell 4.23% to HKD 14.71; Tingyi (Cayman Islands) Holding Corp. (00322) dropped 3.73% to HKD 11.63; COFCO Jiakang (01610) declined 3.2% to HKD 1.21; and Uni-President China (00220) decreased 0.39% to HKD 7.65.

The movement follows an announcement by the National Development and Reform Commission that domestic gasoline and diesel prices will increase by RMB 75 and RMB 70 per ton, respectively, effective from 24:00 on the 21st.

A research report from Goldman Sachs noted that since March to April, broad-based logistics cost inflation has begun to emerge within its coverage of China's essential consumer goods stocks. The market is already fully aware that the cost advantage of locked-in packaging materials, particularly PET, will gradually turn into a headwind as new procurement cycles begin in the second half of 2026.

The report pointed out that logistics costs account for varying proportions of the cost of goods sold for pure beverage companies and other essential consumer goods companies. As of May 10th, diesel prices were 11% higher than the 2025 average level. Theoretically, this could pose a low to high single-digit downside risk to the net profits of the covered companies. Beer, dairy, and beverage companies, such as Tingyi and Uni-President China, are expected to be the most affected.