The agriculture, animal husbandry, and fishery sectors once again rallied strongly against the broader market trend on August 31st, with planting-linked and livestock farming stocks collectively gaining momentum. At the time of writing, New Sai Stock (rights protection), Dunhuang Seed, and Wanxiang Denong all hit their daily price limits. Jinjian Rice and Lihua Shares both surged over 5%, while Shennong Seed, Nongfa Seed, and Shennong Group were also among the notable gainers.

On the news front, analysts have issued warnings that the El Nino index in the tropical Pacific could peak at approximately 3.2 degrees Celsius towards the end of 2026 into early 2027. This projection is about 15% stronger than the super El Nino event of 2015-2016, which is expected to deliver a major shock to global agricultural, energy, and industrial commodity markets. In the agricultural commodities arena, forecasts suggest palm oil, coconut oil, and rubber could appreciate by 30% to 40% over the next 18 months. Robusta coffee prices are anticipated to climb 20% to 30%, while rice prices may rise by 10% to 20%.

From a valuation perspective, the current positioning of the agriculture, animal husbandry, and fishery sector remains at relatively depressed levels, which may present a favourable window for portfolio allocation. According to Wind data, as of the previous trading day's close on August 28th, the benchmark index tracked by Agri-Farming ETF Huabao (159275)—the CSI All-Share Agriculture, Animal Husbandry, and Fishery Index—had a price-to-book ratio of 2.38 times. This sits at a low 17.32 percentile over the past five years, underscoring its attractive medium-to-long-term investment appeal.

Huayuan Securities has noted that commodities such as palm oil, white sugar, cotton, and rubber are likely to face more pronounced production reduction risks during El Nino years. The upward trend in crude oil prices is simultaneously supporting a rebound in agricultural product valuations through dual channels of "cost-push" and "demand resonance." The brokerage recommends close attention to varieties including white sugar, rubber, and soybean meal—whose demand is bolstered by rising oil prices—along with related targets, as well as leading seed companies poised to benefit from profit recovery driven by higher grain prices.

For investors seeking a one-stop exposure across the full agricultural, animal husbandry, and fishery value chain, Agri-Farming ETF Huabao (159275) deserves special attention. According to statistics from the China Securities Index Company, this ETF passively tracks the CSI All-Share Agriculture, Animal Husbandry, and Fishery Index. Its heavyweight constituents include leading hog farming companies, while also covering major sub-sectors of the chain such as feed, grain cultivation, and animal health products. Off-market investors can likewise gain access to the sector through the Agri-Farming ETF feeder funds (Class A 013471, Class C 013472).

Note: When investors subscribe for or redeem fund shares, the authorised brokerage may charge a commission of no more than 0.5%, which includes fees levied by the stock exchange and registration institutions. Please refer to the fund's legal documents for detailed fee structures.

Risk Warning: The Agri-Farming ETF Huabao passively tracks the CSI All-Share Agriculture, Animal Husbandry, and Fishery Index, which has a base date of December 31, 2004 and was officially published on December 12, 2016. The index's constituent stocks are adjusted periodically according to its compilation rules, and historical backtested performance does not guarantee future index returns. Stocks mentioned in this article are presented solely as objective examples of index constituents and do not constitute any recommendations for individual securities, nor do they represent the fund manager's investment direction. Any information appearing herein—including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any form of expression—is provided for reference only. Investors must take full responsibility for their own investment decisions. Furthermore, no viewpoint, analysis, or projection contained in this article constitutes investment advice of any kind 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's legal documents, including the Fund Contract, Prospectus, and Fund Product Information Summary, to understand the fund's risk-return profile and choose products suited to their own risk tolerance. Past performance of funds does not indicate future results, and the performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. According to the fund manager's assessment, Agri-Farming ETF Huabao carries a risk rating of R3—moderate risk—and is suitable for investors classified as balanced (C3) or above; the suitability matching opinion is subject to that of the sales institution. Sales institutions (including the fund manager's direct sales channels and other distributors) conduct their own risk assessments of the aforementioned funds under applicable laws and regulations. Investors should promptly review the suitability opinions issued by the fund manager, as the opinions of various sales institutions may not necessarily be consistent, and the risk-level ratings provided by fund distributors must not be lower than the risk rating issued by the fund manager. Differences may exist between the risk-return characteristics described in the fund contract and the fund's risk rating due to differing considerations. Investors should understand the fund's risk and return profile, carefully select fund products based on their own investment objectives, time horizons, experience, and risk tolerance, and bear risks accordingly. Registration of the aforementioned 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.