The largest agriculture ETF on the Shanghai Stock Exchange, Tianhong (512620), tracking the underlying index, fell by more than 2%. Its valuation has been lower than at least 74% of the time over the past decade, as investors keep buying when prices drop.

In the market, both exchanges opened lower and declined further, with the agricultural sector falling. Regarding related ETFs, the Tianhong Agriculture ETF (512620) tracking index dropped 2.13% during the trading session, with a transaction volume of 2.6188 million yuan; the turnover rate reached 0.24%. Among its constituent stocks, COFCO Tech, Agricultural Development Seed Industry, Zhenghai Seed Industry, Yasheng Group, and Huaying Agriculture all declined by over 5%, with several other stocks also falling.

The Tianhong Agriculture ETF (512620) has experienced a net capital inflow of 502 million yuan over the past 30 trading days. As of April 2, 2026, the fund’s latest size was 1.1B yuan, ranking first among similar Shanghai-listed funds.

The Tianhong Agriculture ETF (512620) closely tracks the CSI Agriculture Index, which has gained 23.92% over the past year. Its industry allocation mainly includes breeding (39.77%), agrochemical products (22.31%), feed (10.96%), and others. The top five constituent stocks are Wens Foodstuffs, Muyuan Foods, Salt Lake Shares, Haid Group, and Zangge Mining. The ETF is also paired with two OTC linkage funds (Class A: 010769; Class C: 010770).

Data from the past decade show that the PE-TTM of the CSI Agriculture Index is 23.33 times, with the current valuation at the 25.72% percentile over the last ten years, below the 74.28% level of the past decade. From a valuation perspective, the index now offers certain cost-effectiveness advantages.

On the news front, according to the Ministry of Commerce’s official website, the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Finance launched the central reserve frozen pork stockpiling work on April 2. According to monitoring data from the Ministry of Agriculture and Rural Affairs, the national average pig price in the fourth week of March fell to 10.68 yuan per kilogram, hitting an eight-year low. The China Youth Daily reports that the China Association for Science and Technology recently issued the “Opinions on Promoting High-Quality Development of Rural Professional Technical Associations in the New Era,” aiming to facilitate the dissemination of modern agricultural production techniques into villages. Additionally, due to the Middle East conflict, international crude oil prices surged significantly, and agricultural commodity prices such as CBOT wheat and corn generally increased in March.

Dongzheng Futures believes that the agricultural sector is temporarily affected by geopolitical tensions and macroeconomic sentiment, but the long-term logic is driven by supply and demand fundamentals. It recommends paying attention to the deployment opportunities of long-term hog futures contracts, as well as trading opportunities in corn options and soybean meal, while closely monitoring the impact of US-Iran negotiations on the global supply chain.

Daily Economic News