The live pig prices continue to decline, with increased capacity regulation efforts. The livestock ETF Ping An remains at a low level and has attracted capital attention.

As of March 24, 2026 at 13:35, among the constituent stocks of the CSI Swine and Livestock Breeding Index (930707), gains and losses were mixed. Aowei Biological led the way up 3.38%, Jin Xin Nong rose 3.32%, and MeiNong Biological rose 2.60%; Muyuan Co., Ltd. led the declines. The latest quote for the Ping An Livestock ETF (516760) was 0.63 yuan. (The listed stocks above are only constituent stocks of the index and do not imply any specific recommendation)

In terms of liquidity, during the trading session, the Ping An Livestock ETF’s turnover rate was 3.03%, with trading volume of 4.4239 million yuan. Looking over a longer period, as of March 23, the ETF’s average daily trading value over the past month was 9.5214 million yuan.

On the news front, recently, hog prices have continued to face pressure. The national average price of the “three-yuan” (external breed) hogs has fallen below 10 yuan per kilogram. On March 20, it was 9.87 yuan per kilogram, down 1.60% week on week. In the whole industry, self-breeding and self-raising and externally purchased piglet farming profits were -297.68 yuan per head and -141.48 yuan per head, respectively, with the level of losses continuing to deepen. In addition, the National Development and Reform Commission and the Ministry of Agriculture and Rural Affairs have jointly held a symposium with pig farming enterprises. They clarified that current prices have entered the excessive-decline warning range of “Level One,” and have launched central government reserves of frozen pork with synchronized efforts to step up local reserve purchases. They also required enterprises to scientifically reduce the inventory of breeding sows and orderly control the breeding-out schedule. The intensity of official capacity regulation has been significantly strengthened, which is expected to accelerate the industry’s deep de-stocking and lay a solid foundation for a subsequent cycle turnaround.

Guojin Securities stated that currently, hog prices continue to fall, and overall, supply-side pressure may keep prices with room to decline further. Compared with the historical same period, the average hog live weight is higher, and the average hog slaughter/market-out weight may continue to decline, while industry market-out is relatively active. From the supply side, total market-out volume in February is expected to increase slightly. Overall, ahead of the holidays, supply increment is still a support factor, and hog prices before and around the Spring Festival are expected to have further downside room. On the policy side, proactive capacity reduction is being continuously advanced, and sustained losses in the sector are likely to benefit the logic of capacity reduction in the coming period and the expectation of higher hog prices next year. In the short term, hog prices still have room to decrease. Recently, industry capacity has already been reduced somewhat under policy regulation and supply pressure, and industry prices have already fallen below the full cost line. Overall, losses are expected to lead to further capacity de-stocking in the sector, with sector sentiment stabilizing at the bottom. In the medium to long term, the hog breeding industry still has relatively strong core profits. After African swine fever, during the industry’s rapid expansion, there are still many companies expanding capacity with low quality. The industry’s cost variance remains huge, while leading companies have sufficient excess profits to release. It is recommended to prioritize quality enterprises with low costs.

The Ping An Livestock ETF closely tracks the CSI Swine and Livestock Breeding Index. The CSI Swine and Livestock Breeding Index selects securities of listed companies involved in businesses such as livestock and poultry feed, livestock and poultry medicine, and livestock and poultry breeding to reflect the overall performance of listed companies related to livestock and poultry breeding.

According to data, as of February 27, 2026, the top ten weight stocks of the CSI Swine and Livestock Breeding Index (930707) were HaiDa Group, Muyuan Co., Ltd., Wen’s Shares, Zhengbang Technology, Meihua Biological, New Hope, Biology Shares, Muyuan Group, San Nong Development, and Lihua Shares. The combined weight of the top ten stocks accounted for 66.76%.

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