Livestock ETF surges with three consecutive days of net subscriptions, pig farming companies are summoned for talks, and capacity reduction is expected to accelerate.

Question: Does the continuous net subscription of the Livestock ETF indicate a potential industry cycle reversal?

In recent news, the National Development and Reform Commission (NDRC) has held talks with pig farming companies, urging overcapacity enterprises to adjust their production capacity. Leading companies are required to proactively reduce capacity and are prohibited from secondary fattening. A report from Tianfeng Agriculture states that piglet prices have decreased by 47% year-on-year, with farming losses exceeding 290 yuan per head, and capacity reduction accelerating.

In terms of brokerage research, Shenwan Hongyuan believes signs of a cycle reversal in the livestock industry are emerging. The catalysts on the left side of the pig breeding sector are accumulating, and the accelerated reduction of breeding sows may signal an approaching industry turning point. Gf Securities’ pig industry experts also indicate that from February to April 2026, pig prices may bottom out with fluctuations, while rising feed costs will intensify farming losses and promote sow capacity reduction.

As of 10:30 on March 24, the CSI Livestock Index (930707.CSI) component stocks showed mixed performance: Biotech shares rose 1.60%, Xinghu Technology increased 1.30%, Luoniushan went up 1.36%, Plum Biological rose 0.36%, and Zhengbang Technology gained 0.33%. The Livestock ETF (159867.SZ) has net subscribed 7.5 million units today, marking three consecutive days of net subscriptions with a total net subscription of 44 million units.

Data shows that the top ten weights in the CSI Livestock Index are Wens Foodstuffs, Haida Group, Muyuan Foods, Zhengbang Technology, Plum Biological, New Hope, Biological Co., North Farm, Sanong Development, and Lihua Co., accounting for 68.12% of the total weight. The index components are highly concentrated, mainly in livestock breeding and feed processing sectors.

The Livestock ETF closely tracks the CSI Livestock Index. The CSI Livestock Breeding Index selects listed companies involved in livestock feed, veterinary medicines, and breeding operations as samples to reflect the overall performance of livestock-related listed companies.

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Livestock ETF (159867)