The food and beverage Sector plunged! Liquor and beer led the decline, with the Food ETF (515710) dropping over 2%! Institutions: liquor may have reached the bottom Range for positioning.

On June 13, according to Gelonghui, today's A-share CSI SWS Food & Beverage index continues to adjust. The food ETF (515710), which reflects the overall trend of the food and beverage sector, fluctuated downward after the opening and at one point fell over 2% during the session. In terms of constituents, liquor stocks such as Baijiu and beer led the decline. As of the time of writing, Beijing Yanjing Brewery fell over 6%, Luzhou Laojiao and Guangzhou Zhujiang Brewery each dropped over 3%, and Wuliangye Yibin and Jiangsu Yanghe Brewery Joint-Stock both declined over 2%. The food and beverage sector, represented by liquor, has been adjusting recently, but Institutions still hold an optimistic attitude towards the future of the sector. Guosen noted that the current position of liquor may have entered a bottoming range and some optimism may be appropriate. Huaxin Securities pointed out that from a fundamental perspective, the demand for the liquor industry is expected to continue its bottoming trend, with overall business demand under pressure, differentiated demand for banquets, and companies actively lowering channel burdens, with inventory being digested steadily; from a valuation perspective, the overall valuation of the sector is low, and there are many buyback or Shareholding actions from liquor companies, with continuous increases in dividends. Future attention should be given to the release of domestic demand policies and the possibility of Inflow into liquor as a low allocation sector. As for consumer goods, expectations for consumption are continuously recovering. From a valuation perspective, this may be a good time for allocation in the food and beverage sector. Data shows that as of yesterday's close, the PE ratio of the CSI Food & Beverage Sub-industry Index tracked by the food ETF (515710) is 20.64 times, which is at a low position in the 4.31% percentile over the past decade, highlighting its cost-effectiveness for mid to long-term allocation. Core assets in the food and beverage sector can be allocated with one click, with a focus on the food ETF (515710). According to the statistics from China Securities Index Company, the food ETF (515710) tracks the CSI Sub-industry Food & Beverage theme index, with about 60% of the positions invested in leading stocks of high-end and next-high-end Baijiu, while nearly 40% of the positions accommodate leading stocks in beverage, dairy, seasoning, and beer sectors, with top ten weighted stocks including "Mao Wuliu Fen Yang", Inner Mongolia Yili Industrial Group, and Foshan Haitian Flavouring and Food. Off-market investors can also allocate core assets of the food and beverage sector through the food ETF connecting fund (Class A 012548/Class C 012549).