The agriculture, animal husbandry, and fishery sector bucked the broader market downturn today (September 17), with the planting chain resuming its upward momentum alongside notable gains in several livestock and poultry farming stocks. By the market close, Huaying Agriculture, Dunhuang Seed Industry, Wanxiang Denong, and Jinjian Rice Industry all hit their daily limit up, while Shennong Seed Industry climbed over 8%, and Yasheng Group and Denghai Seed Industry also posted strong gains. The benchmark index for the Huabao Agriculture, Animal Husbandry, and Fishery ETF (159275), the CSI All-Share Agriculture, Animal Husbandry, and Fishery Index, rose 0.89%.
Note: As of September 16, the weightings of Huaying Agriculture, Dunhuang Seed Industry, Wanxiang Denong, Jinjian Rice Industry, Shennong Seed Industry, Yasheng Group, and Denghai Seed Industry in the CSI All-Share Agriculture, Animal Husbandry, and Fishery Index stood at 0.52%, 0.68%, 0.43%, 1.2%, 1.25%, 1.12%, and 0.74%, respectively.
On the policy front, the Ministry of Agriculture and Rural Affairs recently issued the "15th Five-Year Plan for National Planting Industry Development." The plan explicitly sets a goal to steadily enhance China's comprehensive grain production capacity by 2030, firmly maintaining the bottom line of basic grain self-sufficiency and absolute safety of staple food rations. It also aims to consolidate and improve the production capacity of soybeans, oilseeds, cotton, and sugar crops to maintain reasonable self-sufficiency levels, ensure balanced supply, diverse varieties, and quality safety for vegetables, fruits, and tea, and sharpen the precision of agricultural disaster monitoring and early warning systems while comprehensively strengthening agricultural disaster prevention, mitigation, and relief capabilities. The plan also targets significant achievements in the high-quality development of the planting industry.
Notably, the State Council had previously issued the "15th Five-Year Plan for Accelerating Agricultural and Rural Modernization" on September 7, which calls for expediting the revitalization of the seed industry, fostering national seed industry array enterprises in a tiered manner, and steadily advancing the industrial application of biotech breeding.
Supply-side disruptions are also intensifying. The World Meteorological Organization has confirmed that El Ni帽o has formed and continues to strengthen, predicting it could develop into a super-strength event with related extreme weather risks persisting until 2027. The National Climate Center expects it to peak around November-December this year.
Analysts point out that entering the "15th Five-Year" period, the strategic importance of the agri-food industry continues to rise, with the sector's allocation logic gradually evolving toward a dual-engine approach of "security plus growth." The tight balance between global grain supply and demand is intensifying, and production fluctuations in major producing areas are amplified by climate and geopolitical disruptions, providing upward momentum for global grain price centers.
On valuation, the agriculture, animal husbandry, and fishery sector remains at relatively low levels, suggesting a favorable window for allocation. Wind data shows that as of yesterday's close (September 16), the price-to-book ratio of the CSI All-Share Agriculture, Animal Husbandry, and Fishery Index, tracked by the Huabao Agriculture, Animal Husbandry, and Fishery ETF (159275), stood at 2.32 times, positioning at a low 12.94% percentile over the past five years, highlighting its medium-to-long-term allocation appeal.
Looking ahead, Kaiyuan Securities suggests that with the ongoing intensification of El Ni帽o, which may enter a super-strength phase from the fourth quarter to year-end, rising extreme weather risks could serve as a phased catalyst for opportunities in the planting and seed industry themes.
For a one-stop allocation across the entire agriculture, animal husbandry, and fishery value chain, investors may focus on the Huabao Agriculture, Animal Husbandry, and Fishery ETF (159275). According to China Securities Index Company statistics, the ETF passively tracks the CSI All-Share Agriculture, Animal Husbandry, and Fishery Index, with major holdings including leading hog farming stocks and coverage of key sub-sectors such as feed, grain planting, and animal health. Off-exchange investors can also gain exposure through the Huabao Agriculture, Animal Husbandry, and Fishery ETF feeder funds (Class A: 013471, Class C: 013472).
Note: When subscribing or redeeming fund shares, the authorized broker may charge a commission of up to 0.5%, inclusive of fees levied by the stock exchange and registration institutions. Please refer to the fund's legal documents for detailed fee information.
Institutional source: Kaiyuan Securities' September 6 agriculture, forestry, animal husbandry, and fishery industry weekly report titled "El Ni帽o Intensification Catalyzes Thematic Opportunities in Planting and Seed Industries; Hog Supply and Demand Both Rise Amid Fluctuating Recovery."
Risk disclosure: The Huabao Agriculture, Animal Husbandry, and Fishery ETF (159275) passively tracks the CSI All-Share Agriculture, Animal Husbandry, and Fishery Index, with a base date of December 31, 2004, and a release date of December 12, 2016. The index's constituent stocks are adjusted in accordance with its compilation rules, and historical backtested performance does not predict future index returns. The stocks mentioned in this article are merely objective displays of index constituents and are not recommendations of any individual stocks, 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, comments, forecasts, charts, indicators, theories, or expressions of any form) is for reference only, and investors are solely responsible for their own investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers of any form, and the company shall not be liable for any direct or indirect losses arising from the use of the content herein. Investors should carefully read the Fund Contract, Prospectus, Summary of Fund Product Information, and other fund legal documents to understand the fund's risk-return characteristics and select products suitable for their own risk tolerance. Past fund performance does not predict future results, and the performance of other funds managed by the fund manager does not constitute a guarantee. According to the fund manager's assessment, the risk level of the Huabao Agriculture, Animal Husbandry, and Fishery ETF is 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 institutions) evaluate the above fund's risk in accordance with relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. The opinions of various sales institutions regarding suitability may not be consistent, and the risk rating results issued by fund sales institutions shall not be lower than those issued by the fund manager. Differences exist between the risk-return characteristics described in the Fund Contract and the fund's risk rating due to different considerations. Investors should understand the fund's risk-return profile and carefully select fund products based on their investment objectives, horizon, experience, and risk tolerance, bearing the risks themselves. Registration of the above funds with the China Securities Regulatory Commission does not imply any substantive judgment or guarantee on the fund's investment value, market prospects, or returns. Fund investment requires caution.
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