Shares of Muyuan Foods Group Co.,Ltd. (02714) have risen by more than 8% in Hong Kong trading.

As of the latest update, the stock is up 8.13%, trading at HK$31.4 with a turnover of HK$152 million.

The catalyst for the move is a return of live hog prices to a significant level.

Data from a monitoring network shows that on July 1st, the price for live hogs reached 10.14 yuan per kilogram.

This marks the first time the price has re-entered the "10-yuan era" since April 26th.

Concurrently, policy measures aimed at controlling hog production capacity are accelerating at a notable pace.

Since June, relevant ministries have consecutively convened meetings on capacity regulation.

For the first time, these meetings imposed specific, mandatory "four leadership" requirements on large-scale breeding enterprises.

They also set a firm deadline for the end of September to complete capacity reduction and the culling of low-efficiency sows.

In a research note, Galaxy Securities highlighted the ongoing focus on the trajectory of the hog cycle.

The firm's analysis suggests that hog prices are expected to decline year-on-year in 2026, based on considerations for the breeding sow population and farming efficiency, though intermittent rebounds may occur.

Taking into account the policy-driven capacity reduction and the accelerated destocking likely spurred by deepening industry losses, the firm advises investors to pay close attention to high-quality pig farming companies with significantly improving cost structures and robust financial positions.