Price increase sentiment transmission, Huaxia Agriculture ETF surges against the market, consecutive 9 days of net inflows

On March 16, the A-share agricultural sector defied the market trend and strengthened. As of 09:46, the Agriculture ETF Huaxia (516810) rose 1.06%, with holdings in agricultural seed companies such as Nongfa Seed Industry up 10.06%, Denghai Seed Industry up 7.15%, Andy Su up 4.53%, and other stocks like Yasheng Group and Longping High-Tech also gaining.

Orient Securities stated that among the current agricultural products, varieties like pigs and rubber are already at the starting point of price increases due to their own capacity clearing. Major agricultural commodities represented by sugar, corn, and oils are in a tight supply-demand balance. We believe that, from the perspectives of price increase expectations and strategic security, agriculture currently has extremely high investment value:

(1) The strengthening of upstream resource prices and geopolitical disturbances will directly push up the prices of some agricultural product substitutes (energy, petrochemical products), disrupting their originally fragile supply-demand balance and driving prices higher;

(2) Rising costs of production factors will increase the marginal costs across the planting and breeding industry chains. The natural time lag between cost increases and improvements in production efficiency will lead to the clearing of some entities with insufficient capital accumulation and low efficiency, helping agricultural companies break out of disorderly competition and ongoing internal competition.

Funds are actively allocating to undervalued agriculture. The Agriculture ETF Huaxia has experienced continuous net inflows for nearly 9 days, totaling 76.83 million yuan, reaching a recent scale of 349 million yuan, the highest in nearly a month. Trading volume has increased over the past week, with an average daily turnover of 37.69 million yuan. (Data source: Wind)

The Agriculture ETF Huaxia (516810.SH) holds leading stocks in various sub-sectors such as agrochemicals, planting, and pig farming, benefiting from multiple resonances including anti-internal competition, chemical cycle, seed industry security, and pig cycle reversal. Currently, its valuation is at a historic low. Investors can use ETFs to position for low-level rebounds in agriculture. ETFs offer advantages such as low entry barriers, risk diversification, passive index tracking, transparent holdings, and stable style. The management fee is 0.50%, and the custody fee is 0.10%, the lowest among comparable funds.

Data shows that as of February 27, 2026, the top ten holdings of the CSI Agriculture Theme Index (000949) are Muyuan Foods, Wens Food Group, Salt Lake Potash, Haida Group, Zangge Mining, Yajie International, Zhengbang Technology, Plum Biological, New Hope, and Yangnong Chemical, accounting for a total of 61.09% of the index. (The stocks listed above are only index components and do not constitute specific recommendations.)

(Above stocks are only index components and do not imply specific recommendations.)

The Agriculture ETF Huaxia (516810) is connected via OTC (Huaxia CSI Agriculture Theme ETF Launch-Style Connection A: 016077; Huaxia CSI Agriculture Theme ETF Launch-Style Connection C: 016078; Huaxia CSI Agriculture Theme ETF Launch-Style Connection D: 024273).