The agriculture ETF (159698) rose by 1.16% against the trend, with Institutions being bullish on the defensive nature of the Agriculture Sector.

On April 7, Gelonghui reported that agricultural stocks strengthened against the trend, with Wanxiang Doneed hitting the daily limit, Gansu Dunhuang Seed Group and Shen Nong Seed Industry rising over 8%, driving the grain ETF (159698) up 1.16%. Reviewing historical market trends, the grain Sector performed well during trade conflicts; from June 16, 2018, when the US officially announced the tariff list against China, to January 15, 2020, when the US and China officially signed the first phase of the trade agreement, the grain ETF (159698) tracked the National Grain Index and accumulated a rise of 31.65%. China Merchants stated that the increase in tariffs temporarily reduced the global risk appetite for risk Assets and triggered liquidity shocks, adversely affecting A-shares. Against a backdrop of increasing external uncertainties, the importance of internal circulation and security has once again risen, providing new opportunities for sectors related to agricultural products and chips that are autonomous and controllable. The grain ETF (159698) tracks the National Grain Index and invests in upstream, midstream, and downstream companies in the grain Industry, covering fertilizers, pesticides, as well as seeds, grain planting, and storage links, while the downstream involves Food Processing and trade, fully grasping the overall development opportunities in the grain Industry.