Changes in Hong Kong stocks | Pork concept stocks fell below normal in the afternoon when high-energy sow stocks first fell below normal holdings and production capacity elimination progressed substantially

The Zhitong Finance App learned that pork concept stocks rose in the afternoon. As of press release, Muyuan shares (02714) rose 4.58% to HK$38.38; Wanzhou International (00288) rose 3.15% to HK$6.54; COFCO Jiajiakang (01610) rose 1.95% to HK$1.045; and Dekang Agriculture and Animal Husbandry (02419) rose 1.26% to HK$56.1.

According to the news, data from the National Bureau of Statistics shows that at the end of the third quarter, the country kept 3.62 million sows. For the first time, it fell below normal holdings of 37.5 million heads, a year-on-year decrease of 4.33 million heads, a decrease of 10.7%, and the reduction in production capacity actually progressed. In October, pig prices fell all the way from 10.2 yuan/kg at the beginning of the month to 9.1 yuan/kg at the end of the month, falling by more than 10% during the month. In order to cope with the sluggish market, some pig companies have previously announced targets for reducing the number of sows that can breed, and have successively disclosed the progress of the adjustments.

According to statistics from industry insiders, the 13 listed pig companies had a total net profit of 6.947 billion yuan in a single quarter in the third quarter, turning losses year on year, and the average balance ratio of the industry rose to 62.98%. Shanxi Securities pointed out that if the industry continues to lose money and cash flow tightens, or if market-based capacity removal is further driven, it is expected to lay the foundation for the next round of pig price increases.