The pesticide market is expected to enter a price increase cycle, with the Tianhong Agriculture ETF experiencing a net inflow of over 21 million yuan in the past five days.

As of April 7, 2026 at 09:33, the Tianhong Agricultural ETF (512620) saw brisk trading with a widening spread, while the tracked CSI Agricultural Theme Index (000949) fell 0.53%. In the component stocks, gains and losses were mixed: China Animal Husbandry led with a rise of 3.06%, Hainan Rubber increased by 1.88%, and TEOA Co., Ltd. rose by 1.36%.

As of April 3, the Tianhong Agricultural ETF (512620) grew by 5.9118 million yuan in size over the past week, and its number of shares increased by 9.00 million shares over the past week, achieving significant growth. In terms of capital inflows, over the past five trading days, the Tianhong Agricultural ETF (512620) cumulatively “attracted funds” totaling 21.18 million yuan.

【Product Highlights】

The Tianhong Agricultural ETF (512620) tracks the CSI Agricultural Index Select 50, covering sectors such as breeding (41.9%) and agrochemicals (17.7%), pooling diversified allocations led by leading enterprises such as Muyuan and Haid. The current index’s trailing price-to-earnings (TTM), with negative values excluded, is near the below-10th percentile level over the past decade; combined with the recent rebound in hog prices and inflows of institutional capital, it is expected to benefit from valuation repair and earnings growth.

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Tianhong Agricultural ETF (512620), corresponding to an off-exchange linked fund (A: 010769; C: 010770).

【Hot Events】

Rising importance of food security—agrochemical industry expected to see both volume and price rise together

Agrochemicals are the “protective umbrella” for food. Data from the UN Food and Agriculture Organization show that agrochemicals can prevent more than 30% of global food losses. After geopolitical conflicts escalate, countries will place food security at the top priority, and follow the 2022 fertilizer export controls by tightening agrochemical export while prioritizing domestic supply—then the cycle of channel stockpiling and rising prices will repeat again.

【Institutional Viewpoints】

Donghai Securities noted that, as a “technology-driven cyclical industry,” the agrochemical sector’s R&D investment and its ability to convert technology into practical applications are the core of long-term competitiveness. The industry has already entered the bottom phase of the inventory cycle; in 2025, the period of destocking is close to ending. With prices continuing to rebound recently, leading companies—leveraging their scale advantages, cost-control capabilities, and relatively low concentration in supply and demand—have stronger anti-cyclical resilience and potential for industry consolidation.

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