The beverage sector continued its upward momentum today (October 15), with the Food ETF (515710) showing overall gains, oscillating throughout the day and peaking at a 0.64% increase, currently up 0.48% as of publication.
Among the constituent stocks, consumer goods led the gains. At the close, Jindawei surged 7.92%, Yanjinpuzi experienced a significant rise of 6.41%, while both Chengde Lolo and Yanjing Beer climbed over 4%. Miaokelong and Tongchen Beijian also gained more than 3%.
Notably, there has been substantial capital inflow into related ETFs in the beverage sector recently. For instance, in the case of the Food ETF (515710), data from the exchange shows that there were net subscriptions for 4 out of the last 5 trading days, totaling a net subscription value of 42.16 million. Over the past 20 trading days, the Food ETF (515710) attracted over 174 million, with 16 days recording inflows.
In recent news, Wuliangye announced the results of its increase plan: from April 9, 2025, to September 30, 2025, the company's controlling shareholder, Wuliangye Group, accumulated an additional 6.2733 million shares through the Shenzhen Stock Exchange, holding 0.16% of the total share capital, with an investment amount of approximately 800 million.
Previously, on April 9, Wuliangye disclosed its group’s plan to increase holdings, stating the intention to purchase between 500 million and 1 billion through the Shenzhen Stock Exchange within a six-month period starting from April 9, 2025.
According to periodic fund reports, Wuliangye is the largest holding in the Food ETF (515710), accounting for 14.65% as of the end of the second quarter of 2025.
Analysts from various brokerages suggest that the current period is characterized by low expectations, confidence, and valuations in the liquor sector, recommending to seize mid- to long-term allocation opportunities.
In terms of valuation, the food and beverage sector remains at low levels, indicating a favorable time for allocation. Data as of yesterday (October 14) shows that the food index of the Food ETF (515710) has a price-to-earnings ratio of 20.44, placing it at a low 6.85 percentile over the past decade, highlighting the cost-effectiveness of mid- to long-term allocations.
Looking ahead, Guosen Securities expresses a bullish outlook on the food and beverage sector. The sector currently shows characteristics of "low base, low holdings, and low expectations," where any changes in supply and demand could catalyze stock price increases. With increasing external demand risks, domestic demand elasticity sectors are likely to recover first, and recommendations include sectors expected to show high growth in their third-quarter reports, such as snacks, beverages, and frozen foods.
CITIC Securities notes that the government's encouragement against "involution" is conducive to price stabilization and will promote high-quality development in the long run, enhancing capital market expectations for future economic growth and consumption. With ongoing policy corrections, the low-positioned liquor and catering chain is expected to recover. Currently, the liquor sector is at a low valuation, and Moutai's sales are gradually picking up, making bottoming opportunities worth recognizing.
Investors can easily access core assets in the food and beverage sector, with a focus on the Food ETF (515710). According to statistics from the China Securities Index Company, the Food ETF (515710) tracks the China Securities Segmented Food and Beverage Industry Theme Index, with about 60% of its allocation in leading high-end and sub-high-end liquor stocks, and nearly 40% in leading stocks of beverages, dairy products, condiments, and beer. The top ten weighted stocks include Moutai, Wuliangye, Luzhou Laojiao, and Yili, as well as Haitian Flavouring.
Investors can also participate in core asset allocation through the Food ETF linkage funds (Class A 012548/Class C 012549).
Image and data sources: Shanghai and Shenzhen Exchanges, as of October 15, 2025.
Risk warning: The Food ETF passively tracks the China Securities Segmented Food and Beverage Industrial Theme Index, with the base date being December 31, 2004, and its release on April 11, 2012. The composition of index components is adjusted timely according to the index compiling rules; past performance does not predict future performance. The individual stocks mentioned in this piece are listed objectively as constituents of the index and do not constitute any stock recommendations. The information contained herein (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of statements) is for reference only, and investors must take responsibility for their own investment decisions. Moreover, the opinions, analyses, and forecasts contained in this document do not constitute any form of investment advice for the reader, and the fund manager does not hold any responsibility for direct or indirect losses caused by the use of this document. Investors should carefully read legal documents such as the "Fund Contract," "Prospectus," and "Fund Product Material Summary" to understand the risk-return characteristics of the fund and choose products that match their risk tolerance. Past performance does not indicate future returns, and the performance of other funds managed by the fund manager does not guarantee the performance of the current fund. According to the fund manager’s assessment, the risk level of the Food ETF is classified as R3 - medium risk, suitable for balanced (C3) and higher-tier investors; suitability matching opinions should refer to the selling institutions. Selling institutions (including direct sales institutions of the fund manager and other sales agencies) evaluate the risks of the above funds based on relevant laws and regulations. Investors should pay attention to the suitability opinions issued by the fund manager, noting that the opinions may not be consistent across different selling institutions, and the risk level evaluation results issued by selling institutions must not be lower than those made by the fund manager. There may be differences in the fund contract regarding risk-return characteristics and risk level due to various considerations. Investors should understand the risk-return situation of the fund and prudently select fund products in line with their investment objectives, horizons, experience, and risk tolerance, thus assuming responsibility for possible risks. The registration of the above funds by the China Securities Regulatory Commission does not imply any substantive judgment or guarantee of their investment value, market prospects, or returns. Investment in funds should be approached with caution.
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