The turning point for live pig production capacity reduction is approaching. Institutions say that the value of early positioning in the sector is becoming evident. The Ping An breeding ETF's pullback has attracted capital attention.

Why do institutions favor left-side layout opportunities amid policy regulation of production capacity?

As of March 24, 2026, 10:27 AM, the CSI Livestock Breeding Index (930707) fell by 0.86%. Among the constituent stocks, there were mixed results; Weilan Biotechnology led with a rise of 3.68%, Meinong Biotechnology increased by 2.09%, and Huaying Agriculture rose by 1.97%; while Muyuan Foods dropped by 6.17%, Tianma Technology fell by 5.40%, and Tiankang Biotechnology decreased by 2.83%. The Livestock ETF Ping An (516760) declined by 0.32%, with the latest price at 0.63 yuan. (The stocks listed above are only index constituent stocks and do not imply specific recommendations.)

Today, livestock breeding saw a correction, with funds continuing to invest. The Livestock ETF Ping An had a turnover of 2.06% during the session, with a transaction volume of 3.0165 million yuan. Looking over a longer timeframe, as of March 23, the Livestock ETF Ping An had an average daily trading volume of 9.5214 million yuan in the past month.

In terms of news, the national average price for live pigs fell to 9.87 yuan/kg on March 20, officially breaking the key psychological threshold of 10 yuan/kg, putting the industry into a state of deep losses. Additionally, according to the National Development and Reform Commission, it has recently jointly organized a symposium with the Ministry of Agriculture and Rural Affairs to discuss pig breeding enterprises, clearly requiring strict implementation of production capacity regulation measures, scientifically reducing the breeding sow stock, and orderly controlling the pace of pig market release.

Huaxi Securities believes that the current continuous decline in pig prices, combined with widespread losses across the industry, will significantly accelerate the proactive reduction of production capacity, with the inflection point for capacity reduction approaching, highlighting the value of left-side layout.

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

Data shows that as of February 27, 2026, the top ten weighted stocks in the CSI Livestock Breeding Index (930707) are Haida Group, Muyuan Foods, Wens Foodstuff Group, Zhengbang Technology, Meihua Biotechnology, New Hope, Bioculture, Dabeinong, Shengnong Development, and Lihua Shares, with the top ten weighted stocks accounting for a total of 66.76%.

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