Baijiu sales shine over the Lunar New Year; E Fund (HK) CSI Liquor Index ETF (03189.HK) bucks the trend, up more than 0.5% in early trade.

NewTimeSpace— The Spring Festival consumption theme has received another booster shot.
On the morning of 16 January, the China Alcoholic Drinks Association released headline sales numbers for the holiday period: industry-wide liquor revenue rose a better-than-expected 12% year-on-year, with sell-through rates for premium baijiu topping 85%.
The news lifted the E Fund (HK) CSI Liquor Index ETF (03189.HK), which gained more than 0.5% in early trade despite a softer broader market.

Exchange data show the fund is Hong Kong’s first ETF dedicated to mainland China’s baijiu sector and closely tracks the CSI Baijiu Index.
Drawn from the CSI All Share universe, the index selects companies engaged in the production of baijiu, offering investors a targeted exposure.
Its top-10 holdings include Kweichow Moutai, Wuliangye Yibin, Luzhou Laojiao and other leading distillers.

Policy support is also on tap.
On 11 January the Ministry of Commerce unveiled a 2026 “Boost Consumption” campaign centred on “Shop in China”, expanding trade-in subsidies and activating lower-tier cities—key baijiu consumption arenas.
Last December’s Central Economic Work Conference had already removed unreasonable restrictions on banquets and large-scale gatherings, releasing pent-up demand.

CSC Financial notes that past cycles (2012-16, 2016-21 and 2022-25) show the industry now faces “five bottoms”—policy, inventories, sell-through, wholesale prices and output—while the market exhibits “three lows and one high”: low expectations, low valuations, low mutual-fund ownership and high dividend yields.
With fresh brand strategies from Moutai, Wuliangye and Luzhou Laojiao timed for the Spring Festival peak, the sector may be approaching a cyclical inflection point, offering investors a potential bottom-of-cycle entry opportunity.
(Source: CSC Financial, 9 Jan 2026, “Liquor Cycle Inflection in Sight: Sector at Cyclical Low”)

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