Movement Alert|Muyuan Foods Rises 3.3% in Regular Trading, Credit Rating Upgrade to AAA Boosts Market Confidence

Market Focus05-29

On May 29, Muyuan Foods (02714.HK) rose 3.3% in regular trading, trading at HKD 35.8 per share, with trading volume of HKD 26.12 million. The rally was primarily driven by a credit rating upgrade that reinforced investor confidence in the company's financial resilience.

On May 27, China Chengxin International released its annual tracking report, upgrading Muyuan Foods' corporate credit rating from AA+ to AAA. The outstanding RMB 9.543 billion convertible bond (Muyuan CB) was simultaneously upgraded to AAA, making the company the third AAA-rated debt issuer in the listed hog farming sector, following Wens Foodstuff and New Hope. The upgrade was primarily based on the company's completion of its H-share offering and over-allotment, which raised net proceeds of approximately HKD 11.865 billion, strengthening its equity base and diversifying financing channels. As the hog sector's largest bond issuer with RMB 13.843 billion in outstanding debt, the rating elevation is expected to meaningfully reduce the company's overall financing costs.

Industry analysts note that despite persistent losses across the sector — with 19 listed pig farming companies collectively losing approximately RMB 7.686 billion in Q1 — the countercyclical rating upgrade signals that capital markets are repricing the resilience of leading enterprises.

(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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