Pilot mixed-ownership reform of state farm enterprises will advance steadily, with greater efforts to seek listing and financing
On December 7, the State Council Information Office held a press conference on the reform and development of state farms in the new era, interpreting the "Opinions on Further Advancing the Reform and Development of State Farms" (hereinafter referred to as the "Opinions") issued by the Central Committee of the Communist Party of China and the State Council. Yang Shaopin, a member of the Party Leadership Group of the Ministry of Agriculture, said
On December 7, the State Council Information Office held a press conference on the reform and development of state farms in the new era, interpreting the "Opinions on Further Advancing the Reform and Development of State Farms" (hereinafter referred to as the "Opinions") issued by the Central Committee of the Communist Party of China and the State Council. Yang Shaopin, a member of the Party Leadership Group of the Ministry of Agriculture, said that the country would “reform the authorized operation system of state-owned capital, and carry out pilots for restructuring and establishing state farm state-owned capital investment and operation companies.”
According to statistics compiled by the Securities Daily reporter through Tonghuashun, affected by this favorable policy, among the 19 agricultural stocks included in the China Securities Regulatory Commission's industry classification, 11 stocks rose, with Xinghe Biological leading the gains at 4.67%; four stocks rose by more than 1%, namely \*ST Zhonglu, Yuntou Ecology, Beidahuang and Xiangli Co. Relevant experts said that the agricultural sector has performed relatively well and may become the main battlefield for a cross-year market rally.
Yang Tianming, a researcher at BOC International Securities, said that judging from the current situation, state farm reform policies will still appear in the form of “1+N.” After the top-level design policy is announced, a series of supporting policies are expected to be introduced one after another to accelerate the pace of local reform.
According to the Securities Daily reporter's understanding, the "Opinions" propose taking the grouping of reclamation areas and the corporatization of farms as the main line. In terms of innovating the way fiscal funds are invested, it proposes establishing the China State Farm Industry Development Fund with fiscal funds as the guide. In terms of innovating the management method of state farm land, it proposes managing, protecting and utilizing state farm state-owned land well, and steadily advancing the capitalization and conversion of state farm land into assets.
Yang Shaopin said that state farm reform must vigorously promote the effective allocation of resource factors. Establish a state-owned asset management system suited to the characteristics of state farms that focuses on capital management, build the entire agricultural industry chain with capital as the link, steadily carry out pilot reforms of mixed ownership in state farm enterprises, actively introduce social capital to promote the optimization of enterprise equity structures, explore management and employee shareholding in various forms, and increase efforts to list enterprises for financing.
“At the same time, it is necessary to strictly manage, effectively protect and fully utilize state farm state-owned land, steadily advance the reform process of land assetization and capitalization, and actively explore effective ways to revitalize state farm land resources.” Yang Shaopin said.
“After more than 60 years of development and construction, state farms have already formed enormous state-owned assets. In addition to resource-based assets such as land, enterprise assets exceed 1 trillion yuan.” Yang Shaopin said that as state-owned agricultural enterprises, state farm reform must not only adhere to the basic direction of comprehensive rural reform, but also follow the basic laws of state-owned enterprise reform. This is also the difficulty of state farm reform. This "Opinions" also proposes establishing a state-owned asset supervision system suited to the characteristics of state farms.
Statistics show that the more than 1 trillion yuan in state farm assets are distributed across agriculture, transportation and many other industries, with diverse types. Land is the most important resource-based asset of state farms. State farms nationwide cover 371,000 sq km of national territory, including 93.16 million mu of cultivated land, 230 million mu of grassland and 59.55 million mu of forest land. These are all state-owned assets, but the land, grassland, forest land and cultivated land have not yet been included in accounting.
Yang Shaopin said that the core of establishing and improving a state-owned asset supervision system suited to the characteristics of state farms is to straighten out the relationship between government and capital, clarify ownership relations, and establish a supervision system focused on capital management.
Yang Tianming said that in addition to steadily advancing the assetization and capitalization of state farm land, the "Opinions" highlight the development plan for modern agriculture, including the construction of large agricultural product production bases and modern logistics centers. Enterprises involved in cold-chain logistics, rural e-commerce, agricultural finance and other aspects will be the first to benefit from the reform push.
Chen Jia, a researcher at Changjiang Securities, said that the reform will bring substantial benefits to enterprises in reclamation areas. State farms should separate government functions from operational assets. In the future, high-quality farms, enterprises and other assets in the state farm system are expected to be integrated and injected into listed company platforms. In addition, according to the reform direction of “farm corporatization,” land rent in reclamation areas will be priced by the market, which will help release the profit space of land and reflect the reasonable value of land.
Sina statement: This news is reprinted from a Sina partner media outlet. Sina publishes this article for the purpose of conveying more information and does not mean that it agrees with its views or confirms its description. The article content is for reference only and does not constitute investment advice. Investors operate at their own risk based on this.
According to statistics compiled by the Securities Daily reporter through Tonghuashun, affected by this favorable policy, among the 19 agricultural stocks included in the China Securities Regulatory Commission's industry classification, 11 stocks rose, with Xinghe Biological leading the gains at 4.67%; four stocks rose by more than 1%, namely \*ST Zhonglu, Yuntou Ecology, Beidahuang and Xiangli Co. Relevant experts said that the agricultural sector has performed relatively well and may become the main battlefield for a cross-year market rally.
Yang Tianming, a researcher at BOC International Securities, said that judging from the current situation, state farm reform policies will still appear in the form of “1+N.” After the top-level design policy is announced, a series of supporting policies are expected to be introduced one after another to accelerate the pace of local reform.
According to the Securities Daily reporter's understanding, the "Opinions" propose taking the grouping of reclamation areas and the corporatization of farms as the main line. In terms of innovating the way fiscal funds are invested, it proposes establishing the China State Farm Industry Development Fund with fiscal funds as the guide. In terms of innovating the management method of state farm land, it proposes managing, protecting and utilizing state farm state-owned land well, and steadily advancing the capitalization and conversion of state farm land into assets.
Yang Shaopin said that state farm reform must vigorously promote the effective allocation of resource factors. Establish a state-owned asset management system suited to the characteristics of state farms that focuses on capital management, build the entire agricultural industry chain with capital as the link, steadily carry out pilot reforms of mixed ownership in state farm enterprises, actively introduce social capital to promote the optimization of enterprise equity structures, explore management and employee shareholding in various forms, and increase efforts to list enterprises for financing.
“At the same time, it is necessary to strictly manage, effectively protect and fully utilize state farm state-owned land, steadily advance the reform process of land assetization and capitalization, and actively explore effective ways to revitalize state farm land resources.” Yang Shaopin said.
“After more than 60 years of development and construction, state farms have already formed enormous state-owned assets. In addition to resource-based assets such as land, enterprise assets exceed 1 trillion yuan.” Yang Shaopin said that as state-owned agricultural enterprises, state farm reform must not only adhere to the basic direction of comprehensive rural reform, but also follow the basic laws of state-owned enterprise reform. This is also the difficulty of state farm reform. This "Opinions" also proposes establishing a state-owned asset supervision system suited to the characteristics of state farms.
Statistics show that the more than 1 trillion yuan in state farm assets are distributed across agriculture, transportation and many other industries, with diverse types. Land is the most important resource-based asset of state farms. State farms nationwide cover 371,000 sq km of national territory, including 93.16 million mu of cultivated land, 230 million mu of grassland and 59.55 million mu of forest land. These are all state-owned assets, but the land, grassland, forest land and cultivated land have not yet been included in accounting.
Yang Shaopin said that the core of establishing and improving a state-owned asset supervision system suited to the characteristics of state farms is to straighten out the relationship between government and capital, clarify ownership relations, and establish a supervision system focused on capital management.
Yang Tianming said that in addition to steadily advancing the assetization and capitalization of state farm land, the "Opinions" highlight the development plan for modern agriculture, including the construction of large agricultural product production bases and modern logistics centers. Enterprises involved in cold-chain logistics, rural e-commerce, agricultural finance and other aspects will be the first to benefit from the reform push.
Chen Jia, a researcher at Changjiang Securities, said that the reform will bring substantial benefits to enterprises in reclamation areas. State farms should separate government functions from operational assets. In the future, high-quality farms, enterprises and other assets in the state farm system are expected to be integrated and injected into listed company platforms. In addition, according to the reform direction of “farm corporatization,” land rent in reclamation areas will be priced by the market, which will help release the profit space of land and reflect the reasonable value of land.
Sina statement: This news is reprinted from a Sina partner media outlet. Sina publishes this article for the purpose of conveying more information and does not mean that it agrees with its views or confirms its description. The article content is for reference only and does not constitute investment advice. Investors operate at their own risk based on this.