Inventory destocking progresses slowly, CSI Liquor Index hits fresh lows, E Fund (HK) CSI Liquor Index ETF (03189.HK) drops nearly 1.5%.

NewTimeSpace Market Watch:The liquor sector faced renewed pressure on January 27, with the CSI Liquor Index hitting fresh intraday lows as the industry continued to adjust at depressed levels. As of 11:11 a.m., E Fund (HK) CSI Liquor Index ETF (03189.HK) drifted lower in choppy trading, down 1.42%.

According to HKEX data, this fund is Hong Kong's first ETF dedicated to mainland China's liquor industry, closely tracking the CSI Liquor Index. The index selects listed companies engaged in liquor production from the CSI All Share Index universe, providing diversified exposure to the sector. Top ten holdings include premium distillers such as Kweichow Moutai, Wuliangye, and Luzhou Laojiao.

Index performance shows the CSI Liquor Index has been in persistent correction since its June 2021 peak of 21,985.6 points, touching a cycle low of 8,251.41 on September 18, 2024. With the intraday low of 8,323.39 on January 26, 2026, marginally above the prior trough, whether the index can stabilize at this level has become a key market focus.

CSC Financial notes that the liquor industry is experiencing a convergence of "five bottoms" (policy, inventory, sales, wholesale price, and production-sales) alongside capital market conditions of "three lows and one high" (low expectations, low valuations, low public fund holdings, and high dividend yields). Combined with recent policy implementations and approaching Spring Festival peak season, the firm believes the current adjustment phase is approaching an inflection point, with capital markets pricing in expectations ahead of fundamentals—presenting a cyclical bottom allocation opportunity for the liquor sector. (Source: CSC Financial Securities, January 9, 2026, "Liquor Sector Adjustment Inflection Point Approaching; Cyclical Bottom Allocation Opportunity Emerges")

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