The agriculture and fishery sector resumed its upward momentum today (August 18), with the market's first agriculture-fishery ETF, 华宝农牧渔ETF (159275), rallying sharply after the opening bell. Intraday prices briefly climbed more than 2%, and as of press time, the fund was up 1.91%. Among constituent stocks, shares in agricultural product processing, seed industry, and livestock farming segments led the gains. As of the latest update, 雪榕生物 surged over 13%, 神农种业 rose more than 10%, while 天邦食品, 农发种业, and 金健米业 all hit the daily limit.

On the news front, hog prices continued their upward trajectory. Data shows that last week, hog prices trended higher with notable strength, with the weekly average price reaching 10.72 yuan per kilogram, up 0.32 yuan from the previous week. The rise was primarily driven by recovering end-market consumption after the start of autumn, as well as widening price spreads between standard and large hogs, which prompted farmers to hold back sales. This has led to a short-term tightening of supply. Notably, despite last week's hog price rebound, the average loss per head for farming operations remained at approximately 165 yuan. Meanwhile, the piglet market failed to follow suit, with losses in piglet sales widening to about 116 yuan per head as the restocking season entered its off-peak period—approaching the cycle's maximum loss level of 130 yuan per head. Historically, September to October marks the trough for piglet prices, often resulting in the largest losses, and further deterioration cannot be ruled out.

Some institutions point out that under sustained funding pressure, farming entities have been boosting piglet proportions to free up capital. However, as the off-season for restocking arrives in the second half of the year, piglet losses may widen once again. For farming entities already under financial strain, the path of relying on piglet sales to recoup funds could be blocked, potentially forcing these groups to reduce sow inventories to lower capital occupation. Overall, the trend of capacity liquidation remains intact, and expectations are positive for the magnitude of this round of capacity reduction.

From a valuation perspective, the agriculture and fishery sector remains at relatively low levels, suggesting a favorable window for positioning. According to Wind data, as of yesterday's close (August 17), the price-to-book ratio of the CSI All-Share Agriculture and Fishery Index, tracked by the first agriculture-fishery ETF (159275), stood at 2.2 times—sitting at a low 5.1% percentile over the past five years, highlighting attractive mid-to-long-term allocation value.

Looking ahead, 国金证券 notes that over the medium-to-long term, the hog farming industry still offers solid central profit margins. Additionally, during the rapid expansion following the African swine fever outbreak, many enterprises expanded capacity with low-quality additions, leaving significant variance in industry cost structures. Leading companies have ample room to release excess profits, and the recommendation is to prioritize high-quality enterprises with low costs.

For a one-stop allocation across the agriculture and fishery value chain, attention should focus on the market's first agriculture-fishery ETF (159275). According to data from CSI Index, the ETF passively tracks the CSI All-Share Agriculture and Fishery Index, with heavyweight constituents including leading hog farming names such as 牧原股份 and 温氏股份, while also covering key sub-sectors of the agriculture-fishery chain, including feed, grain planting, and animal health. Off-market investors can also gain exposure through the agriculture-fishery ETF feeder funds (Class A: 013471, Class C: 013472).

Data sources: Wind, as of end of June 2026, with industry classification based on the Shenwan tertiary industry categories. Charts and data: Shanghai and Shenzhen stock exchanges, as of August 10, 2026.

Note: The "first agriculture-fishery ETF (159275)" refers to the first ETF tracking the CSI All-Share Agriculture and Fishery Index. When subscribing or redeeming fund shares, the authorized broker may charge a commission of no more than 0.5%, which includes fees collected by the stock exchanges and registration institutions. The agriculture-fishery ETF does not charge a sales service fee. For the feeder fund Class A, the subscription fee is 1% for amounts below 1 million yuan; 0.6% for amounts from 1 million yuan (inclusive) to 2 million yuan; and 1,000 yuan per transaction for amounts of 2 million yuan (inclusive) and above. The redemption fee is 1.5% for holdings within 7 days; 0.5% for holdings from 7 days (inclusive) to 30 days; and 0% for holdings of 30 days (inclusive) or more. For feeder fund Class C, the redemption fee is 1.5% for holdings within 7 days and 0% for holdings of 7 days (inclusive) or more, with a sales service fee of 0.3%.

Risk disclosure: The agriculture-fishery ETF passively tracks the CSI All-Share Agriculture and Fishery Index, with a base date of December 31, 2004, and a launch date of December 12, 2016. The index's returns over the past five complete fiscal years were: 2025: 11.12%; 2024: -10.4%; 2023: -13.97%; 2022: -12.66%; 2021: -3.99%. The index's volatility over the past five complete fiscal years was: 2025: 13.21%; 2024: 29.88%; 2023: 14.39%; 2022: 26.34%; 2021: 25.66%. The index's constituent stocks are adjusted periodically according to its compilation rules, and backtested historical performance does not indicate future index performance. The stocks mentioned herein are solely objective displays of index constituents and are not recommendations for any individual stock, nor do they represent the fund manager's or the fund's investment direction. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any form of expression) is for reference only, and investors must bear responsibility for their own investment decisions. Additionally, any views, analyses, or forecasts herein do not constitute investment advice to readers, and 华宝基金 assumes no liability for any direct or indirect losses arising from the use of this content. Investors should carefully read fund legal documents such as the Fund Contract, Prospectus, and Fund Product Information Summary to understand the fund's risk-return characteristics and select products that match their own 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 the fund's performance. According to the fund manager's assessment, the agriculture-fishery ETF is rated R3-medium risk, suitable for investors with a balanced (C3) risk profile or above; please refer to the sales institution for suitability matching opinions. Sales institutions (including the fund manager's direct sales channels and other sales institutions) conduct risk assessments on the above funds in accordance with relevant laws and regulations. Investors should promptly review the suitability opinions issued by the fund manager. The suitability opinions of various sales institutions are not necessarily consistent, and the fund product risk ratings issued by fund sales institutions shall not be lower than those issued by the fund manager. Differences exist between the fund's risk-return characteristics in the Fund Contract and the fund's risk rating due to varying considerations. Investors should understand the fund's risk-return profile and carefully select fund products based on their own investment objectives, time horizon, experience, and risk tolerance, bearing risks themselves. Registration of the above funds with the China Securities Regulatory Commission does not imply a substantive judgment or guarantee regarding the fund's investment value, market prospects, or returns. Fund investment requires caution.

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