Valuations are at historical lows. The livestock ETF is experiencing stable fluctuations and adjustments. Institutions say the sector currently offers a good risk-reward ratio.

As of March 26, 2026, 13:42, the CSI Livestock Breeding Index (930707) decreased by 0.64%. Among its components, there were mixed performances: Sanong Development led with a 1.78% increase, Zhongmu Co., Ltd. rose by 1.38%, and Xiantan Co., Ltd. increased by 1.02%. On the downside, Jinxin Farm declined by 5.33%, Meinong Biological fell by 2.72%, and Xiaoming Co., Ltd. dropped by 2.27%. The Ping An Livestock Breeding ETF (516760) decreased by 0.93%, with a latest price of 0.64 yuan.

In terms of liquidity, the Ping An Livestock Breeding ETF had a trading turnover of 1.41% during the trading session, with a transaction volume of 2.1058 million yuan. Looking at a longer period, as of March 25, the average daily trading volume over nearly one month was 9.3162 million yuan.

News-wise, pig prices continued their downward trend in March. As of March 20, the national average price for live pigs was 10.06 yuan per kilogram, with many regions falling below the 10 yuan per kilogram mark. During the same period, the profitability for self-breeding and external piglet purchases was -297.68 yuan per head and -141.48 yuan per head, respectively, with losses deepening. Under the dual pressures of significant losses in breeding and strict policy controls, industry capacity reduction has accelerated. Data from Chongyi Consulting indicates that the industry has entered a “bottoming out” phase.

Shanxi Securities pointed out that the first half of the year is an ideal window for capacity reduction. Under the resonance of policies to “counteract internal competition” and spontaneous industry adjustments, there may be a third significant capacity contraction since 2021. Meanwhile, the slope of the sow productivity curve, represented by PSY, may phase temporarily slow down, further supporting sustainable capacity reduction. Currently, the valuation of this sector is at a historical low, offering a good risk-reward ratio.

The Ping An Livestock Breeding ETF closely tracks the CSI Livestock Breeding Index, which selects listed companies involved in animal feed, veterinary medicines, and livestock farming as samples to reflect the overall performance of livestock breeding-related listed companies.

Data shows that as of February 27, 2026, the top ten weights in the CSI Livestock Breeding Index (930707) are Haida Group, Muyuan Foods, Wens Foodstuffs, Zhengbang Technology, Meihua Biological, New Hope, BioShares, North Farm, Sanong Development, and Lihua Co., Ltd., with the top ten stocks accounting for 66.76% of the total index weight.

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