Chinese Liquor Industry Q1 Consolidation Extends! E Fund CSI Liquor Index ETF (03189.HK) Falls More Than 2.5% in Morning Session

NewTimeSpace News: As of April 17, the baijiu sector faced significant pressure in early trading, with Kweichow Moutai dropping over 3%, followed by declines in Yingjia Gongjiu, Huiquan Beer, and Jinhui Liquor. E Fund CSI Liquor Index ETF (03189.HK) opened low and trended lower, falling more than 2.5%. Year-to-date, the fund has posted a relatively muted performance with a return of -8.04%.

According to HKEX data, this fund is Hong Kong's first exchange-traded fund dedicated to the mainland China baijiu industry, closely tracking the CSI Baijiu Index. The CSI Baijiu Index selects listed companies engaged in baijiu production from the universe of the CSI All Share Index, providing investors with diversified exposure to the sector. Top ten holdings include leading distillers such as Kweichow Moutai, Wuliangye, and Luzhou Laojiao.

NewSpace data shows that as of March 2026, the CSI Baijiu Index traded at approximately 18x trailing P/E, standing at the 3.14th percentile over the past decade. Specifically, Kweichow Moutai's P/E ratio sits around 19.4x, near its 10-year low.

Looking ahead, Guosen Securities notes that earnings report expectations are decompressing, while sales declines are stabilizing and narrowing, suggesting increasing bottoming signals for the sector. Operating inflection points among liquor enterprises may diverge throughout the year. Q1 2026 performance is expected to continue the downward trend, though the magnitude of decline should narrow compared to Q3-Q4 2025. Investors are advised to monitor the extent of earnings clearance in Q4 2025 plus Q1 2026. Distillers with better inventory destocking, stable price trends, and earlier, more thorough adjustments are expected to be the first to reach an inflection point.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.