Central Government Resumes Frozen Pork Reserve Purchases, Pork-Related Stocks Rally

On April 2, 2026, China's pork sector saw strong stock gains led by Huisheng Biology, following the government's announcement of a second round of central frozen pork reserve purchases to stabilize the market. Current live pig prices have hit an eight-year low at 10.68 yuan/kg, with the pig-to-grain ratio falling to a critical 4.40:1, well below the warning threshold. Despite oversupply—with breeding sow inventories exceeding official limits—and declining pork consumption share, coordinated intervention by the NDRC, MOFCOM, and Ministry of Finance aims to regulate the market. Analysts project continued price pressure in H1 2026, with a potential recovery in H2 as capacity reduction takes effect. Investment recommendations highlight low-cost producers like Muyuan and Wens Foodstuff as key opportunities during this adjustment phase.