HK Stock Market Move | Food stocks rise across the board as the wave of food and beverage price increases continues to build, with capital rebalancing driving the sector's strength.

Food stocks rose across the board. As of press time, U-PRESID CHINA (00220) gained 5.02% to HK$7.85; TINGYI (00322) rose 4.90% to HK$12.63; WANT WANT CHINA (00151) gained 4.04% to HK$2.835; and Vitasoy International (00345) rose 1.56% to HK$6.19. On the news front, since September, leading companies such as Anjoy, Sanquan, and Haixin have announced price increases to dealer channels, all citing rising raw material costs. In addition, brands including Genki Forest, Wahaha, and CR BEVERAGE have adjusted their supply prices to dealers, and Heineken has also initiated price adjustments in multiple regions. Experts said that the continued climb in raw material costs is the common driver behind this round of price increases. Kaiyuan Securities noted that the sector's chip structure is showing a trend of improvement. Along with prolonged adjustment, pressure from institutional holdings and floating shares has been somewhat released, most leading companies' PE ratios are at historically low percentiles, and market expectations have been revised downward. Overall, the combination of low valuation, low expectations, and low crowding forms the objective basis for left-side allocation in the sector. Analysts said the core support for the food and beverage sector's recent contrarian strength comes from "rebalancing" on the capital side.