Pig prices hit bottom, triggering expectations of capacity reduction; Huabao Fund Agriculture, Animal Husbandry, and Fish ETF (159275) rose over 1%! Institutions: Industry fundamentals and valuations are expected to recover.

The agriculture, livestock, and fishery sector performed strongly today (April 2nd), with the market’s first Agriculture, Livestock, and Fishery ETF (159275) opening sharply higher, reaching a maximum intraday increase of 1.26%. As of the time of writing, it is up 1.05%.

In terms of constituent stocks, some stocks in the breeding, animal health, and related sectors led the gains. As of the report, Bairui Biological surged over 6%, TianKang Biological and ZhongMu Co., Ltd. both rose over 3%, and Muyuan Foods, Haid Group, and Andy Su also saw significant gains.

On the news front, pig prices continued to decline, with the nationwide average price of external three-way crossbred pigs falling to 9.41 yuan/kg in late March, hitting a decade-low. Both fat pigs and piglets are experiencing losses. Some analysts point out that current capacity reduction has shifted from expectations to reality, with the reduction of breeding sows combined with the rapid decline in piglet prices (down 32 yuan per head week-over-week), which is expected to significantly accelerate the clearance of lagging capacity. In the medium term, supply-side excess will remain the main theme until 2026, but companies with high breeding efficiency and cost advantages still have the ability to cycle through periods.

From a valuation perspective, the current valuation level of the agriculture, livestock, and fishery sector remains relatively low, making it a good time to allocate to this sector. Data shows that as of yesterday’s (April 1st) close, the market’s first Agriculture, Livestock, and Fishery ETF (159275) tracking the CSI All Share Agriculture, Livestock, and Fishery Index has a price-to-book ratio of 2.38, which is at the 11.37% percentile over the past five years, highlighting its long-term allocation value.

Looking ahead, Shanxi Securities pointed out that the pig industry may face pressure in the first half of the year, but it is also a good window for capacity reduction. Since the industry’s overall debt reduction and balance sheet repair are not yet complete, continued low prices could further promote market-driven capacity cuts. Under the policy guidance of “counter-involution” in the pig industry, capacity reduction under regulatory control is also progressing simultaneously. This year may see the third significant capacity reduction since 2021, with the fundamentals and valuation of the pig breeding industry expected to recover.

For a comprehensive layout of the entire agriculture, livestock, and fishery industry chain, focus on the market’s first Agriculture, Livestock, and Fishery ETF (159275). According to the China Securities Index Company, the ETF (159275) passively tracks the CSI All Share Agriculture, Livestock, and Fishery Index, with key holdings including leading pig breeding companies like Muyuan Foods and Wens Food Group, as well as major segments such as feed, grain planting, and animal health. Off-market investors can also gain exposure through the Agriculture, Livestock, and Fishery ETF Connection Funds (Class A 013471 / Class C 013472).

Data source: Wind, as of the end of March 2026, industry classification based on Shenwan’s third-level industry categories.

Images and data source: Shanghai and Shenzhen Stock Exchanges, etc., as of April 2, 2026.

Note: The market’s first Agriculture, Livestock, and Fishery ETF (159275) refers to the first ETF tracking the CSI All Share Agriculture, Livestock, and Fishery Index.

Note: When investors subscribe or redeem fund shares, the authorized broker may charge a commission not exceeding 0.5%, including related fees charged by stock exchanges, registration agencies, etc. The Agriculture, Livestock, and Fishery ETF does not charge a sales service fee.

The subscription fee for the Agriculture, Livestock, and Fishery ETF Connection A-shares is: below 1 million yuan, 1%; from 1 million to 2 million yuan, 0.6%; above 2 million yuan, a flat 1,000 yuan per transaction. Redemption fees are: within 7 days, 1.5%; from 7 to 30 days, 0.5%; beyond 30 days, 0%.

The redemption fee for the C-shares is: within 7 days, 1.5%; beyond 7 days, 0%. The sales service fee rate is 0.3%.

Risk reminder: The Agriculture, Livestock, and Fishery ETF passively tracks the CSI All Share Agriculture, Livestock, and Fishery Index, which has a base date of December 31, 2004, and was launched on December 12, 2016. The index’s constituent stocks are adjusted periodically according to the index’s rules, and past backtested performance does not predict future performance. The stocks mentioned in this article are only listed for objective reference and do not constitute any stock recommendation or represent the fund manager’s or fund’s investment direction. All information (including but not limited to stocks, comments, forecasts, charts, indicators, theories, or any form of expression) is for reference only. Investors are responsible for their own investment decisions. Furthermore, any opinions, analyses, or forecasts in this article do not constitute investment advice. Huabao Fund is not responsible for any direct or indirect losses caused by using this content. Investors should carefully read the fund’s legal documents such as the “Fund Contract,” “Prospectus,” and “Fund Product Summary” to understand the fund’s risk-return characteristics and choose products suitable for their risk tolerance. Past performance does not indicate future results, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. According to the fund manager’s assessment, the risk level of the Agriculture, Livestock, and Fishery ETF is R3—medium risk, suitable for balanced (C3) and above investors. Suitability opinions are subject to the sales institution. Sales institutions (including the fund’s direct sales channels and other sales agencies) will evaluate the risk according to relevant laws and regulations. Investors should pay attention to the suitability opinions issued by the fund manager. The risk level assessments provided by sales agencies may vary and must not be lower than the fund manager’s assessment. The fund’s risk-return profile in the fund contract may differ due to different considerations. Investors should understand the fund’s risk-return characteristics, consider their own investment goals, time horizon, experience, and risk tolerance, and bear the risks themselves. The China Securities Regulatory Commission’s registration of the fund does not imply any judgment or guarantee of its investment value, market prospects, or returns. Investment in funds should be cautious.