In the final trading session on August 25, the Shanghai Composite Index edged up 0.19% to close at 3,889.44 points, while the baijiu sector gained 1.20% to finish at 1,865.08 points, with fifteen baijiu stocks posting gains.

Looking at individual performers, Kweichow Moutai Co.,Ltd. closed at 1,304.00 yuan per share, down 0.05%. Meanwhile, Wuliangye Yibin Co.,Ltd. ended at 71.52 yuan per share, rising 0.06%. Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. closed at 116.66 yuan per share, slipping 0.38%. Luzhou Laojiao Co.,Ltd. finished at 84.73 yuan per share, declining 0.91%. Yanghe Brewery Joint-Stock Co.,Ltd. closed at 39.43 yuan per share, up 0.97%.

According to a research report from Guotai Haitong Securities, the baijiu sector experienced notable pullbacks in May and June due to liquidity pressures, with the Shenwan Baijiu Index dipping below its September 24, 2024 low. Currently, most baijiu companies' share prices remain below that level.

From a valuation perspective, the Shanghai Composite Index and CSI 300 Index currently trade at price-to-earnings (TTM) levels corresponding to the 52nd and 65th percentiles since 2000, respectively. In contrast, the Shenwan Food and Beverage sector sits at the 11th percentile, ranking only above non-bank financials, with the baijiu sub-sector positioned around the 21st percentile.