Chinese hog farmers slide after authority’s intensive moves to curb surging pork prices, Jiangxi Zhengbang tumble on pre-restructuring
Chinese hog farmers slide after authority’s intensive moves to curb surging pork prices, Jiangxi Zhengbang tumble on pre-restructuring

Chinese hog farmers slide after authority’s intensive moves to curb surging pork prices, Jiangxi Zhengbang tumble on pre-restructuring

 

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Chinese hog breeder Jiangxi Zhengbang Technology plunged 7.8%, The company said that a court in Nanchang had launched pre-restructuring procedure on its debt.

The company added that its production and operations remain normal and the will address liquidity issue by shrinking production capacity and selling assets. 

Jiangxi Zhengbang in June this year reported 542 million yuan of overdue commercial bills after it lost about three billion dollars amid falling hog prices since late last year until the first half of this year. 

Other hog farmers also traded lower on Wednesday, with Leshan Giantstar Farming & Husbandry falling 5.6% and Wens Foodstuff down 5.2% after Chinese authority took intensive actions to curb pork prices and crack down on speculation in the market.

Since Oct 19, live hog prices have declined slightly and on Oct 25, the average live hog price stood at 13.58 yuan per jin (500 grams), falling by 0.72 yuan from a peak last week, according to data from consultancy Sublime China Information.

China last week released 20,000 tonnes of frozen pork from central reserves to curb surging prices, marking the sixth batch this year. A total of 107,100 tons of pork were released to the market in the past five rounds of issuance since earlier September.

The National Development and Reform Commission (NDRC), the state planner, has warned about surging pork prices and held meetings with major hog farmers to study measures to ensure hog supply and stabilize prices. Read more …