The agricultural supply chain extended its gains today (August 25), driving the broader farming, animal husbandry, and fishery sector higher. As of the time of writing, Shennong Seed Industry rose over 11%, while Jinjian Rice Industry, Wanxiang Denong, Denghai Seed Industry, and Dunhuang Seed Industry all hit the daily limit up, with Beidahuang, Nongfa Seed Industry, and Longping High-Tech also posting notable gains.
On the news front, the UK Met Office predicted on August 21 that this year's El Ni帽o event could become the strongest on modern meteorological record, potentially exacerbating droughts, heavy rainfall, and other extreme weather conditions across multiple regions worldwide, with significant implications for agricultural production. Chen Jianhua, fund manager of the Agriculture, Animal Husbandry and Fishery ETF (159275), noted that historical experience shows strong El Ni帽o events typically exert their influence over one to two years, with varying impacts on agricultural products. The most prominent beneficiaries tend to be sugar, rubber, and palm oil. From a two-year perspective, we are currently in the first year, and key agricultural commodities such as sugar and rubber remain at relatively low price levels.
From a valuation standpoint, the agriculture, animal husbandry, and fishery sector currently sits at relatively low levels, which may present an opportune window for positioning. According to Wind data, as of yesterday's close (August 24), the price-to-book ratio of the CSI All-Share Agriculture, Animal Husbandry and Fishery Index, tracked by the market's first agriculture, animal husbandry, and fishery ETF (159275), stood at 2.23 times, placing it at a low 6.27th percentile over the past five years, highlighting compelling long-term allocation value.
Looking ahead, Orient Securities expressed optimism on the hog farming sector, citing more than five months of deep market losses, increasingly clear production capacity reduction trends, and continued policy reinforcement on industry capacity limits. The brokerage expects sustainable medium-to-long-term price strength and improved earnings for hog enterprises. Starting in the third quarter, the surprise upside in hog prices is likely to trigger an upward cycle for the sector.
Regarding the planting supply chain, Orient Securities noted that rising commodity prices have already transmitted to agriculture. From a fundamental perspective, the upward trend in grain prices has been established, with favorable fundamentals for planting and seed industries, presenting notable investment opportunities in large-scale farming. As El Ni帽o intensity expectations rise, there is potential for price gains in tropical cash crops such as natural rubber, white sugar, and palm oil.
For investors seeking one-stop exposure to the entire agriculture, animal husbandry, and fishery value chain, the market's first Agriculture, Animal Husbandry and Fishery ETF (159275) offers a comprehensive approach. According to China Securities Index Company statistics, this ETF passively tracks the CSI All-Share Agriculture, Animal Husbandry and Fishery Index, with key holdings including leading hog farming companies and coverage across major sub-sectors such as feed, grain planting, and animal health. Off-market investors can also access the sector through the linked feeder funds (Class A: 013471, Class C: 013472).
Note 1: When subscribing or redeeming fund shares, the authorized broker may charge a commission of no more than 0.5%, which includes fees levied by stock exchanges, registration agencies, and other relevant institutions. Fund fee details are specified in the fund's legal documents.
Note 2: The market's first agriculture, animal husbandry, and fishery ETF refers to the first ETF tracking the CSI All-Share Agriculture, Animal Husbandry and Fishery Index.
Risk Disclosure: The Agriculture, Animal Husbandry and Fishery ETF passively tracks the CSI All-Share Agriculture, Animal Husbandry and Fishery Index, with a base date of December 31, 2004, and publication date of December 12, 2016. Index constituent stocks are adjusted according to the index compilation rules, and historical backtest performance does not indicate future index performance. The stocks mentioned are solely objective displays of index constituents and do not constitute stock recommendations, nor do they represent the fund manager's investment direction. Any information in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors must bear responsibility for their own investment decisions. Additionally, any views, analyses, or forecasts in this article do not constitute investment advice to readers, and the company assumes no liability for direct or indirect losses arising from the use of this content. Investors should carefully read the Fund Contract, Prospectus, Fund Product Information Summary, and other fund legal documents to understand the fund's risk-return characteristics and select products suitable for their risk tolerance. Past fund performance does not indicate future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. According to the fund manager's assessment, the Agriculture, Animal Husbandry and Fishery ETF carries a risk rating of R3-medium risk, suitable for balanced (C3) and above investors. Please refer to the sales institution for suitability matching opinions. Sales institutions (including the fund manager's direct sales and other sales channels) conduct risk assessments on the above funds according to relevant laws and regulations. Investors should promptly review the suitability opinions issued by the fund manager. Suitability opinions from various sales institutions may not be consistent, and fund product risk ratings issued by sales institutions shall not be lower than those issued by the fund manager. Differences exist between the fund contract's risk-return characteristics and the fund's risk rating due to different consideration factors. Investors should understand the fund's risk-return profile and carefully select fund products based on their investment objectives, time horizons, investment experience, and risk tolerance, assuming all risks themselves. The registration of the above funds with the China Securities Regulatory Commission does not imply any substantive judgment or guarantee regarding their investment value, market prospects, or returns. Fund investment requires caution.