What’s trending?

The hashtag #More than 1,000 real estate companies have switched to raising pigs (超1,000家房企转行养猪) is trending on Chinese social media after state-owned CCTV Finance released a video introducing the latest booming industry.

What’s the story?

A continuous boom in pork prices has seen pig farmers profit as other industries look on in envy. Perhaps surprisingly, those who have turned to pig breeding include China’s real estate conglomerates. According to the chairman of New Hope Group, a leading pig breeder, real estate companies across the country have entered the market. Experts believe they may be motivated by a desire to diversify operations away from a single industry to reduce risk.

China’s bout with African swine fever has sent pork prices skyrocketing for much of the last two years, leading companies in China’s sector to see big gains in their turnover. Producer Muyuan Food said in its third quarter report that profit per pig rose to more than 1,700 yuan ($260).

Since September 2020, the price of pork has started to drop and some experts explain that income volatility in the industry is inevitable. Investors need to be aware of the risks and cannot pursue a successful transformation in a short time.

What are people saying online?

The news seems to please most people, as they are concerned about pork prices. “If too many companies enter the pork industry, they may face the risk of oversupply of pork, and the price of pork will come down,” one comment read.

However, some people are worried that the craze will fade, as real estate companies often leave projects incomplete. “When new demand appears, everyone swarms in. Then when the craze has passed, everyone drifts away, and the waste of resources becomes obvious to all,” another comment read.