HK Stock Market Move | Food and beverage stocks rose in the afternoon, with U-PRESID CHINA (00220) jumping over 4%. Institutions said that measures to expand domestic demand are expected to continue to be implemented.

Food and beverage stocks rose in the afternoon. As of the time of writing, U-PRESID CHINA (00220) rose by 4.01% to 9.08 Hong Kong dollars; ZHOU HEI YA (01458) rose by 3.92% to 2.12 Hong Kong dollars; CR BEVERAGE (02460) rose by 1.87% to 14.18 Hong Kong dollars; NONGFU SPRING (09633) rose by 1.52% to 33.3 Hong Kong dollars. Founder pointed out that since the beginning of the year, with more proactive fiscal policies and moderately loose monetary policies gradually being implemented, the synergistic effects of stock policies and incremental policies have been continuously strengthened. If high tariffs put pressure on China's exports to the US, policies to expand domestic demand are expected to continue to be implemented, promoting overall economic stability and improvement domestically. Promoting domestic demand to drive growth, focusing on boosting the food and beverage sector to stimulate domestic demand opportunities. Cathay Haitong pointed out that soft drinks benefit from their high frequency and low price attributes, with sales growth leading the overall food and beverage sector. Bottled water, energy drinks, sports drinks, and sugar-free tea continue to grow. Under the drive of category dividends, leading companies such as Eastroc Beverage, CR BEVERAGE, and NONGFU SPRING have resilient performance. Considering the decline in market risk preference and a greater focus on domestic demand, the soft drink sector is expected to show excess returns. The high base of the snack food industry has passed. We believe that the pressure from the base effect will gradually ease for the snack food industry in 2025Q2 and beyond. Companies with category and channel dividends are expected to show performance advantages.