The entire pig farming industry has entered a loss phase. Guotai (159865) livestock ETF has fallen over 2%, with funds countering the trend and flowing in nearly 60 million shares during the trading session.

Pork hogs have fully entered a loss-making phase. On March 31, the Guotai CSI Livestock Breeding ETF (159865) pulled back by more than 2%. Capital positioned itself in the opposite direction, with inflows of 59 million units during the session.

According to Guotai Junan Securities, at the end of the month, the ex-farm price of lean-meat type hogs in China fell to below 10 yuan/kg, deepening the extent of losses. After a rebound in the stock market, prices saw a sharp pullback, and participation levels remain low. It is expected that participants facing persistently high costs for a relatively longer period will face pressure to reduce positions. Changes in sow capacity data will continue to act as a catalyst. Investors are advised to pay attention to allocation opportunities during the loss-making stage.

The Guotai CSI Livestock Breeding ETF (159865) tracks the CSI Livestock and Breeding Index (930707). The index selects, from the Shanghai and Shenzhen markets, securities of listed companies involved in businesses such as livestock and poultry feed, livestock and poultry breeding, animal vaccines, and veterinary medicines as index constituents, to reflect the overall performance of related listed-company securities in the livestock industry. The index focuses on the livestock subsector within the agriculture sector.

Risk disclosure: References to individual stocks are only for industry event analysis and do not constitute any recommendation or investment advice regarding any individual stock. Short-term gains and losses of indices are for reference only and do not represent their future performance, nor do they constitute any commitment or guarantee regarding fund performance. Views may be adjusted as market conditions change, and do not constitute investment advice or commitments. The fund’s risk-return characteristics vary across products. Investors are kindly requested to read the fund’s legal documents carefully, fully understand product features, risk levels, and the principles of profit distribution, choose products that match their own risk tolerance, and invest prudently. For details on fund fees and rates, please refer to the legal documents.

Daily Economic News