The Agriculture and Animal Husbandry ETF tracking index once rose over 1%, and the pig sector is expected to benefit from policy stockpiling support, accelerating industry capacity clearance.

How can AI-driven policy stockpiling help stabilize the hog market?

As of the close on April 2, 2026, the China Securities Agricultural and Animal Husbandry Theme Index (931778) rose by more than 1% at one point, closing up 0.31%. Among constituent stocks, Giants Agriculture rose 10.01%, China Animal Husbandry rose 7.12%, Shennong Group rose 4.88%, Haid Group rose 4.39%, and Tiankang Biological rose 4.09%.

To maintain steady operation in the pork market and better play the role of central reserve adjustment, the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Finance are currently carrying out central reserve frozen pork stockpiling. Next, the Ministry of Commerce will continue to closely monitor pork market conditions, strengthen trend analysis, coordinate with relevant departments to do a good job in reserve management and regulation, and ensure stable operation of the market.

Shanxi Securities said that the hog breeding industry may face pressure in the first half of the year, but it is also a relatively good time window for capacity reduction. Because the industry-wide tasks of reducing liabilities and repairing the balance sheet have not yet been completed, if industry prices continue to remain lackluster, it may further promote market-oriented capacity reduction. Under the guidance of the “anti-involution” policy in the hog breeding industry, capacity reduction under policy regulation is also advancing in parallel. In addition, the slope of the production efficiency curve for sow capacity represented by PSY may slow down at least in phases. This year, there may be the third round of relatively significant capacity reduction since 2021, and the fundamentals and valuations of the hog breeding industry are expected to recover.

Guosheng Securities said that this month, the price trends of various products have continued. Hog quotations reached 9.46 yuan/kg. Downward pressure in the short term remains strong. Also considering that feed costs are already rising along the way, the industry’s continued deep losses have a high degree of certainty; the extent and duration of losses are running beyond expectations. After the market adjusts, the basic fundamentals are reassessed. The direction of the logic remains the reduction of loss-making capacity. Over the next quarter, industry losses are almost a foregone conclusion; the certainty of this logic is stronger. Watch for configuration opportunities during the loss phase.

The Agricultural and Animal Husbandry ETF, Jianxin (159616), closely tracks the China Securities Agricultural and Animal Husbandry Theme Index. The China Securities Agricultural and Animal Husbandry Theme Index selects 50 listed companies whose businesses involve related fields such as grain planting, seed production, pesticides and fertilizers, agricultural machinery, livestock breeding, feed production, and animal health, as sample securities to reflect the overall performance of listed securities in the agricultural and animal husbandry theme.