China set up its first state-sponsored investment fund designated for the agricultural sector on Monday.
The fund, supported by the Ministry of Finance, CITIC Group, China Agricultural Bank and Cinda Asset Management Co., is based on a 1 billion yuan ($160 million) contribution from each. The move will act as seed money to hopefully attract more investments into the sector.
To promote the development of its agricultural sector, with domestic food security also a high priority in the Five Year Plan, China has invested more than 6 trillion yuan ($930 billion) from 2003 to 2012, the most in the country’s history, the Ministry of Finance said in October.
Over that time, expenses in the sector from the central budget jumped from 214 billion yuan [US$34.3 billion] in 2003 to 1.2 trillion yuan [US$192 billion], with an annual increase of more than 21%, according to the ministry.
The financial support facilitated the implementation of policies and measures that contributed to a system designed to improve farmers’ livelihoods and incomes as well as the country’s agricultural output, the ministry said.
After the two-day Central Economic Work Conference held in Beijing, which set tones of greater “quality and efficiency” of growth next year, the annual central rural work conference will be held at the end of December.
Source: Morning Whistle Dec 2012