Movement Alert|Muyuan Foods Rises 3.11% in Regular Trading, Production Capacity Regulation Policy Catalyzes Rebound After Multi-Day Selloff

Market Focus05-21

On May 21, Muyuan Foods rose 3.11% in regular trading, trading at 35.66 HKD/share, with trading volume of 22.8 million HKD. The stock rebounded after hitting record lows over several consecutive sessions.

On the news front, CITIC Securities published a research note stating that the Ministry of Agriculture and Rural Affairs has revised and issued a comprehensive hog production capacity regulation plan, lowering the national breeding sow normal retention target to 37.5 million heads. The regulation framework has been further refined, signaling strengthened determination to stabilize pig prices. With hog prices currently oscillating at low levels, the combination of policy intervention and deep industry-wide losses is expected to further accelerate capacity de-stocking.

Prior to this rebound, Muyuan Foods had declined over 5% on May 20, hitting a post-listing low. The stock had been under sustained pressure due to national hog prices of approximately 9.65-9.73 yuan/kg, well below the company's full production cost of around 12 yuan/kg, resulting in a Q1 net loss of 1.215 billion yuan.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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