The food and beverage sector experienced a rebound on Tuesday (August 13), climbing from a lower opening. The Food & Beverage ETF Hua Bao (515710), which tracks the sector's overall performance, initially fluctuated at low levels before quickly rallying, with its intraday price briefly rising nearly 1%. As of press time, it was up 0.58%. Among its constituent stocks, liquor and other alcoholic beverage companies led the gains. At the time of reporting, Jinhui Liquor hit the daily limit up, while Shanxi Fenjiu and Guyue Longshan rose over 4%. Other notable gainers included Gujing Gongjiu, Laobaigan Liquor, Kweichow Moutai, and Wuliangye.

Some institutions suggest the baijiu sector is currently in a state of low expectations and low valuations, with potential catalysts including liquidity, policy changes, and supply-demand dynamics. In the short term, price increases for high-end baijiu have already been reflected in stock prices. Considering the varying degrees of market consolidation among distillers, companies that adjusted earlier and have undergone more thorough consolidation are expected to see valuation recovery first, presenting structural opportunities.

From a valuation perspective, the food and beverage sector remains at a low point. Data shows that as of the close on Monday (August 12), the underlying index of the Food & Beverage ETF Hua Bao (515710), the CSI Sub-Industry Food & Beverage Index, had a price-to-earnings (P/E) ratio of 20.86 times, placing it at the 15.69th percentile over the past decade, a historically low level (Source: Wind). This highlights the sector's medium-to-long-term cost-effective investment appeal.

Western Securities noted that weak liquor sales in the second quarter are expected to accelerate balance sheet cleanup, with a potential sequential improvement in the second half of the year due to a low base. Under a market style rebalancing, the sector could be a key area of focus. Kaiyuan Securities pointed out that the baijiu industry is currently in a bottoming phase, with Moutai's price increases effectively stabilizing the industry's pricing system, providing a safety margin for the sector. The industry remains in a destocking cycle, and balance sheet risks for distillers are still being released, but it is generally in a bottom range. A positive turnaround is expected in the second half of the year. During this adjustment, differentiation within the industry has intensified, with leading distillers benefiting from strong brand moats, high earnings certainty, and attractive dividend yields, enhancing their investment value.

For a one-stop allocation to core assets in the food and beverage sector, investors can focus on the Food & Beverage ETF Hua Bao (515710). According to CSI Index Company statistics, this ETF tracks the CSI Sub-Industry Food & Beverage Theme Index, with baijiu leading stocks comprising nearly 50% of its holdings. The top ten constituent stocks include "Moutai, Wuliangye, Luzhou Laojiao, Fenjiu, Yanghe," Yili Industrial Group, and Haitian Flavouring. Off-exchange investors can also access this sector's core assets through the Food & Beverage ETF Hua Bao linked fund (A share class: 012548, C share class: 012549).

Note: When subscribing or redeeming fund shares, the subscription and redemption agent broker may charge a commission of up to 0.5%, which includes fees charged by the stock exchange, depository, and other relevant institutions. For fund fee rates, please refer to the fund's legal documents. Data source: Shanghai and Shenzhen stock exchanges, etc., as of August 13, 2026. Risk disclaimer: The Food & Beverage ETF Hua Bao passively tracks the CSI Sub-Industry Food & Beverage Theme Index, which was established on December 31, 2004, and published on April 11, 2012. The index's constituent stocks are adjusted according to the index compilation rules in a timely manner, and its historical back-tested performance does not guarantee future index performance. The stocks mentioned in this article are only for the objective display of index constituents and are not a recommendation of any individual stock, nor do they represent the fund manager's investment direction. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors must take responsibility for their own investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers and shall not be liable for any direct or indirect losses arising from the use of this content. Investors should carefully read the fund's legal documents, such as the "Fund Contract," "Prospectus," and "Fund Product Information Summary," to understand the fund's risk-return characteristics and select products that match their risk tolerance. Past performance of the fund is not indicative of future results, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. According to the fund manager's assessment, the Food & Beverage ETF Hua Bao has a risk rating of R3 (Medium Risk), suitable for investors with a balanced (C3) risk profile and above. The suitability matching opinion is subject to the sales institution's determination. Sales institutions (including the fund manager's direct sales and other sales institutions) conduct risk assessments on the above funds according to relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. The suitability opinions of various sales institutions may not be consistent, and the fund product risk rating results issued by the fund sales institution shall not be lower than the risk rating results issued by the fund manager. The fund's risk-return characteristics and risk rating in the fund contract may differ due to different considerations. Investors should understand the fund's risk and return profile and carefully select fund products based on their investment objectives, horizon, experience, and risk tolerance, bearing the risks themselves. The registration of the above funds by the China Securities Regulatory Commission does not imply a substantive judgment or guarantee of the fund's investment value, market prospects, or returns. Fund investment requires caution. A MACD golden cross signal has formed; these stocks are showing strong upward momentum.