Agriculture-related policies are about to be introduced, and agricultural stocks are welcoming major positive news
According to a report by China National Radio's "Sannong China," it is the end of the year again, and friends who follow policy and the stock market will notice that the programmatic document for agricultural reclamation reform has just been released, the main content of the 2016 Central "No. 1 Document" will gradually emerge, and with the upcoming Central Economic Work Conference and Rural Work Conference, as well as various agricultural product prices rising due to the holiday effect, in the secondary market, a wave of positive news for agricultural stocks is quietly approaching...
Although agriculture is a sector that is inevitably speculated on at the end of every year, the focus of speculation has differed over the years. So, counting up recent news and policies, which segment of agricultural themes will be the highlight this year?
Looking back at 2014, the overall performance of agriculture-related sectors was moderate, with growth rates almost at the bottom among all sectors. Turning to this year, the rise in agricultural stocks remains moderate, but judging from recent market attention, most institutions have begun recommending agricultural targets in the low-valuation range. From a policy perspective, the programmatic document for agricultural reclamation reform has just been released, the content of the 2016 Central No. 1 Document will also gradually emerge, and the Rural Economic Work Conference will be held soon, offering many thematic opportunities.
Although agriculture is a sector that is inevitably speculated on at the end of every year, the focus of speculation has differed over the years, such as farmland water conservancy in 2010, biological breeding and agricultural machinery driven by agricultural science and technology innovation in 2011, the agricultural machinery sector in 2012, land transfer and the agricultural inputs sector related to the transformation of agricultural development mode in 2013, and the agricultural informatization theme in 2014.
Before the Central Rural Work Conference and the No. 1 Document are released, regarding the theme with the greatest chance of standing at the forefront of this year's agricultural sector, the market generally believes that the Rural Work Conference and the No. 1 Document will focus on reflecting the guiding opinions on agriculture in the 13th Five-Year Plan. According to the recommendations of the 13th Five-Year Plan, vigorously advancing agricultural modernization is the main line of agricultural policy.
This includes advancing agricultural standardization and informatization, improving the whole-process regulatory system for agricultural product quality and safety from farm to table, the modern agricultural science and technology innovation promotion system, the agricultural socialized service system, developing modern seed industry, raising the level of agricultural mechanization, and so on. Combined with the series of agricultural policies intensively issued recently by the State Council and relevant ministries and commissions, it can be seen that agricultural informatization and mechanization will be the key orientation of agricultural policy during the 13th Five-Year Plan period, and attention can be focused on investment opportunities in the two major sectors of rural e-commerce and intelligent agricultural machinery manufacturing.
It is worth noting that the overall valuation of the agricultural stock industry is relatively low. Previously, driven by the strong performance of financial stocks and "Belt and Road" theme stocks, the broader market trend was fierce, while agricultural stocks were slow to perform. Recently, the adjustment in the trend of financial stocks and securities stocks has become prominent, and the situation of sector rotation in the broader market has become evident. Facing recent positive policies, agricultural stocks are expected to enter a rotation cycle, and investors can pay more attention to the agricultural sector.