Agriculture ETF Tianhong (512620) has accumulated a net capital inflow of over 500 million yuan in the past 30 trading days, with the current valuation below 74% of the past ten years.

In the market, both exchanges opened high and moved higher, with the agricultural sector rising. Regarding related ETFs, the Tianhong Agriculture ETF (512620) index increased by 0.94% during the trading session, with a transaction volume of 3.4511 million yuan; the turnover rate reached 0.31%. Among the constituent stocks, Zangge Mining, Yajia International, Muyuan Foods, and others also rose together.

The Tianhong Agriculture ETF (512620) has experienced a net capital inflow of 505 million yuan over the past 30 trading days. As of April 7, 2026, the fund’s latest size was 1.09B yuan, ranking first among similar Shanghai-listed funds.

The Tianhong Agriculture ETF (512620) closely tracks the CSI Agriculture Index, which has gained 24.98% over the past year. Its industry allocation mainly includes breeding (39.77%), agrochemical products (22.31%), feed (10.96%), and others. The top five constituent stocks are Wens Foodstuffs, Muyuan Foods, Salt Lake Potash, Haid Group, and Zangge Mining. The ETF is also equipped with two OTC linkage funds (Class A: 010769; Class C: 010770).

Data from the past ten years show that the PE-TTM of the CSI Agriculture Index is 23.25 times, with the current valuation at the 25.59th percentile over the past decade, below the 74.41st percentile. From a valuation perspective, the index now has certain cost-effectiveness advantages.

On the news front, according to the Ministry of Commerce website, the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Finance recently launched the central reserve frozen pork stockpiling work, signaling clear policy support; meanwhile, the Ministry of Agriculture and Rural Affairs has implemented production filing management for leading enterprises, orderly regulating the national breeding sow inventory, with capacity regulation mechanisms continuing to strengthen. According to the Ministry of Agriculture and Rural Affairs, the 2026 policy list for strengthening agriculture and benefiting farmers includes 16 subsidies such as arable land protection, grain planting rewards, and agricultural machinery purchases. Provinces like Heilongjiang and Fujian have successively issued implementation opinions to promote rural revitalization, with policy dividends being actively implemented. Additionally, the outbreak of Type 1 foot-and-mouth disease from abroad has been detected in Xinjiang and Gansu, sparking market close attention to changes in the breeding industry landscape.

Open Source Securities believes that the current oversupply in the pig breeding industry is difficult to change, and the deepening losses in piglets are accelerating the release of pessimistic expectations. As losses from breeding expand in magnitude and duration, the process of capacity reduction in the industry is expected to accelerate. Investors should closely monitor clear signals of capacity clearance, such as breeding sow inventories.