Because pork prices have continued to rise since the beginning of this year, repeatedly reaching record highs, "realizing pork freedom" has become the latest way to show off wealth on the Internet. "if you can't afford pork, you can only eat seafood." it has also become a daily joke among people in Guangzhou. Recently, "10,000 tons of frozen pork from the central reserve" has become a hot headline, with more than 200 million readers in less than a day.
The pig standing on the tuyere seems to be a little motionless recently. Yesterday, the concept of A-share pork fell sharply, with the concept index falling 6.73% unilaterally throughout the day, the lowest closing point since March, with a downward trend of box breakage formed in more than half a year, and the trading volume was more than doubled to 11.82 billion yuan from 5.72 billion yuan in the previous trading day. Tang Renshen, Zhengbang Science and Technology, Muyuan shares, Aonong biology and other 8 pork concept stocks fell by the daily limit, while Dabei Nong, Yisheng shares and Wen's shares led the decline.
Take various measures to stabilize pork prices
In response to high pork prices and ensuring daily supply on National Day, Gao Feng, a spokesman for the Ministry of Commerce, said yesterday that the Ministry of Commerce, together with a number of ministries, would organize relevant enterprises to release 10,000 tons of central pork reserves to the market before the National Day. Since the beginning of September, a total of three batches of central reserve meat have been put into the market, totaling 20, 000 tons of pork, 2400 tons of beef, and 1900 tons of mutton. In the next step, the Ministry of Commerce will pay close attention to the supply and demand and price changes in the pork market and, together with relevant departments, continue to do a good job in the release of pork reserves from the central and local governments.
In addition to the massive listing of national storage meat, since September, Zhejiang, Jinan, Xi'an, Dalian and other local governments have also announced the release of reserve meat to the consumer market. In addition, in order to make up for the domestic pork gap, the Ministry of Commerce has repeatedly said that it will encourage the expansion of pork imports. Gao Feng said that recently, enterprises are conducting inquiry procurement of US agricultural products in accordance with market-oriented principles and WTO rules, and have traded considerable amounts of soybeans and pork. China imported 162900 tons of pork in August, up 76 per cent from a year earlier, according to data released by the General Administration of Customs. Since May this year, pork imports have maintained a growth rate of more than 60 per cent, reaching 1.164 million tons from January to August, approaching the total of 1.193 million tons for the whole of last year.
As a result of a number of measures, pork prices fell slightly before the National Day. The latest monitoring data released by the website of the Ministry of Commerce showed that last week (September 16-22), pork prices were 36.39 yuan per kilogram, down 0.4 percent from the previous week. Yang Zhenhai, director of the Animal Husbandry and Veterinary Bureau of the Ministry of Agriculture and villages, believes that after September, as the classical swine fever epidemic in Africa has entered a relatively stable period, various policies have come into effect, creating more favorable external conditions for the recovery of pig production capacity. It is expected that production enthusiasm will further increase, pig production capacity will bottom out and stabilize before the end of this year, pork market supply is expected to gradually stabilize and recover, and prices will gradually fall back to a reasonable level.
Go northward to reduce the holdings of pork stocks
Although pork prices have continued to rise sharply, most of the relevant listed companies have not improved much in their semi-annual report.
On the basis of a 55.87% drop in net profit in 2018, Tang Renshen again dropped 35.96% in its 2019 semi-annual report; Zhengbang Technology reported a loss of 275 million yuan, an increase of more than 80 million yuan over the same period last year; and Tianbang's semi-annual report turned from profit to loss of 367 million yuan compared with the same period last year. The semi-annual report results of Tiankang Biology, Dabei Nong, Zhenghong Technology, and Lihua shares also dropped sharply compared with the same period last year; Luo Niushan and other semi-annual reports reported losses; the young eagle retreated or even failed to repay its debts, and the stock price fell below 1 yuan and was about to be delisted. Only a few companies such as Wen's shares and New Hope of the head company reported significant improvement in their semi-annual performance.
Due to the recent inclusion or expansion of A shares by a number of well-known international index companies, northbound funds have opened a "buy-and-buy" model since September. Yesterday, I bought a net purchase of 2.499 billion yuan again. In September, I bought a total of 64.981 billion yuan, setting a new record for net buying in a single month. But in the northward capital to buy, but quietly shipped part of the pork concept stocks.
New Wufeng's northward capital holdings have been reduced from a peak of 14.33 million shares in May to about 870000 shares at present, reducing their positions by 94 per cent. The financing balance of New Wufeng has also dropped to 61.31 million yuan from 75.69 million yuan on Sept. 10. Zhengbang science and technology northbound capital holdings have been reduced from 42.2 million shares at the end of August to 26.1 million shares at present, reducing their positions by 38 per cent. Tianbang's northward capital holdings have also been rapidly reduced to 2.97 million shares from 7.3 million shares on Sept. 11, reducing their positions by 59 per cent. Tiankang Biology, Dabei Nong, Shanghai Meilin, Shunxin Agriculture and so on have all gone northward to significantly reduce their capital holdings. Only a few leading companies, such as Wen's shares, have been allowed to go northward to increase their holdings.
Capital going northward meets Waterloo again in the operation of Tang Renshen. When Tang Renshen retracted from a high of 18.82 yuan in April to a low of 12 yuan in June, the capital went northward thinking that there was an opportunity to bottom out, increasing its position from a small position of 20, 000 shares to an all-time high of 18.57 million shares in August, an increase of more than 900 times. However, the magic of going northward to turn stone into gold seems to have failed, and Tang Renshen's share price has been slow to improve under the sharp increase in its holdings. After mid-August, the northward capital began to reduce its holdings sharply, leaving only 1.52 million shares last week, reducing its position by 92 per cent. From the Tang Renshen stock price trend, northward capital this operation is likely to be a loss. But the tragedy is not over, after Tang Renshen's recent continuous negative line, northward funds can not resist the impulse to copy the bottom, this week quickly increased the position to 5.76 million shares, yesterday a limit was tied up again.