A major institutional investor in China Yurun Food Group, the country's biggest hog processor, sought to sell a 4.62 per cent stake for up to HK$851.12 million after the market closed yesterday, sources said. The offer came from either AllianceBernstein, which holds 5.99 per cent of Yurun, or Capital Research and Management, which owns 5.03 per cent, a source said. Yurun chairman Zhu Yicai, who holds a 51.63 per cent stake, was not the seller, the source added. UBS was the deal's bookrunner and declined to comment. The unidentified investor offered 70.93 million shares for HK$11.63 to HK$12 each, a discount of 4 to 6.96 per cent to Yurun's closing price of HK$12.50 yesterday. The stock has gained 37.21 per cent so far this year. New York-based AllianceBernstein, one of the world's largest investment managers, cut its holdings in April and May, according to Yurun's annual report and the Hong Kong stock exchange. Capital has been flowing into Asia, especially Hong Kong and mainland-focused funds, prompting a string of recent share sales, market observers said. 'The market feedback is quite good,' said one market source. Mr Zhu (above) said earlier that Yurun aimed to have a hog-slaughtering capacity of 30 million heads by next year. It had earmarked HK$1.5 billion as capital expenditure this year to acquire small and medium-sized slaughtering houses to achieve the target. Yurun slaughters pigs and processes their meat in the highly fragmented mainland market. Pig prices on the mainland surged in 2007 because of shortages after a disease outbreak but started to soften last year after the problem came under control.