Shares in the pork sector are broadly higher today. At the time of writing, DEKON AGR (02419) is up 4.97% at HK$49, COFCO JOYCOME (01610) has gained 3.92% to HK$1.06, and MUYUAN (02714) has risen 3.26% to HK$32.32.

On the news front, data indicates the national live hog price reached 11.36 yuan per kilogram on July 9th, marking the 11th consecutive day of gains and representing a cumulative increase of over 20% from the low point in April.

Analysis suggests that under the guidance of industrial policies for the hog sector, capacity reduction through policy regulation may proceed concurrently. Furthermore, the growth rate of sow productivity, represented by metrics like PSY, may slow down in phases. This year could witness the third significant round of capacity reduction since 2021, which is expected to help repair the fundamentals and valuations of the hog farming industry.