Asset observation logic during the phase of hog production capacity reduction: The diversification effect of agricultural ETF ChinaAMC and its Beta representation

In the cyclical fluctuations of the pig farming industry, the capacity reduction phase is accompanied by significant cash flow pressure and capacity adjustments. The agricultural ETF ChinaAMC uses a diversified index construction mechanism to reduce the impact of micro-level fluctuations and represent the trends of the industry cycle. During this phase, highly leveraged farming entities face the risk of cash flow depletion, and the industry's loss period has exceeded 5 months. Index-based tools dilute the unsystematic risks of individual companies by holding a basket of industry chain enterprises, thereby reducing the volatility of individual securities. The recovery of the pig farming industry cycle is usually accompanied by an increase in industry concentration