October CPI rebound and policies to boost domestic demand lifted the Tourism ETF by 5%, while the Food & Beverage ETF attracted over RMB 2.9 billion in net inflows during the second half of the year, ranking first among its peers.

Gelonghui, November 10th | Today, consumption stocks in A-shares such as duty-free, airports, tourism, food, and liquor experienced a wave of limit-up trading. China Duty Free Group, Guoguang Chain, Jinjiang Hotels, and Babi Food hit their daily price limits, driving the Tourism ETF to rise another 5% after the afternoon opening, while the Food and Beverage ETF gained 2.99%. Key updates include: ① The October CPI increased by 0.2% year-on-year and month-on-month, reaching an eight-month high; core CPI rose 1.2% year-on-year, with the growth rate expanding for six consecutive months. The PPI dropped 2.1% year-on-year but narrowed in decline, increasing 0.1% month-on-month, marking the first positive turn this year. ② Going forward, the Ministry of Finance will continue implementing initiatives to boost consumption, providing fiscal subsidies for personal consumer loans in key sectors and business loans in related industries, thereby stimulating potential in service consumption areas like elderly care and childcare. ③ In the first week following the implementation of Hainan's new offshore duty-free policy, duty-free purchases amounted to RMB 506 million, with 72,900 shoppers—a year-on-year increase of 34.86% and 3.37%, respectively. After the completion of Q3 earnings reports, against the backdrop of high valuations in the technology growth sector, significant volatility was observed. Today, tech sectors led by AI hardware saw notable pullbacks, spurring a rebound in the lower-valued broad consumption sector, reflecting some market style rotation characteristics. For instance, the latest PE ratio of the细分食品 index is 20.59x, located at the 7.55th percentile over the past decade. The market now faces a five-month earnings blackout period, creating a need for positioning towards next year and potential style shifts. Notable products and their performance at press time include: “Travel, Stay, Play, Shop” full-scenario coverage: Tourism ETF (562510) +5%, with major holdings including China Duty Free Group, Junting Hotels, Hainan Airport, and Shanghai Airport. Largest scale in its category: Food and Beverage ETF (515170), +2.99%, with a current size of RMB 6.064 billion, net inflows of RMB 2.973 billion in the second half of the year, ranking first in its peer group. Major holdings include leading premium liquor companies such as Kweichow Maotai, Wuliangye Yibin, and Shanxi Xinghuacun Fen Wine, collectively accounting for approximately 60%.