HK Stock Market Move | Pork concept stocks surged today as the price of live pigs rebounded by 20% from its low point. The industry's production capacity continued to be digested.

Pork concept stocks rose across the board today. As of the time of writing, DEKON AGR (02419) rose by 4.97% to HK$49, COFCO JOYCOME (01610) rose by 3.92% to HK$1.06, and Muyuan Foods Group (02714) rose by 3.26% to HK$32.32. According to data from Pig314.com, the national average price of live pigs reached 11.36 yuan per kilogram on July 9, marking the 11th consecutive day of increase, with a cumulative increase of over 20% since the low point in April. Shanxi believes that under the guidance of policies in the pig industry, the disposal of production capacity under policy regulation may proceed simultaneously. In addition, the slope of the production efficiency curve of sow production capacity, represented by PSY, may stage a temporary slowdown. This year, there may be a third significant disposal of production capacity since 2021, and the fundamentals and valuation of the pig farming industry are expected to be restored.