HK Stock Market Move | Concept stocks related to pork collectively decline. The normal inventory of live pigs is reduced, and deep losses in the industry may force a clean-up.

Pork concept stocks collectively fell. As of the time of writing, Muyuan Foods (02714) fell by 4.31% to 37.1 Hong Kong dollars; COFCO JOYCOME (01610) fell by 2.27% to 1.29 Hong Kong dollars; WH GROUP (00288) fell by 0.85% to 9.33 Hong Kong dollars. On the news front, the Ministry of Agriculture and Rural Affairs has revised and issued the implementation plan for comprehensive regulation of pig production capacity, setting the stable number of sows in the country at around 37.5 million, lower than the target set in February 2024. China Great Wall pointed out that clear policies combined with market self-adjustment may lead to an earlier reversal in the pig sector. The bank stated that by April 2026, the total monthly slaughtered pigs by major listed pig companies reached 16.603 million, a year-on-year increase of 0.50%, with continuous expansion of slaughtering. Muyuan Foods' total cost went down by 7.25% year-on-year, but the pig prices have fallen below the cost line, causing the industry to suffer losses. Deep losses will force the clearance of inefficient production capacity, and industry concentration is expected to increase.