Agricultural products industry: the Deep Reform Group adopted detailed opinions and policies on land reclamation reform.

On the morning of October 13, Xi Jinping presided over the 17th meeting of the Central Leading Group for Comprehensive Deepening Reform and delivered an important speech. The meeting approved and approved a number of documents such as Opinions on Further Promoting the Reform and Development of Agricultural Reclamation. We believe that following the relevant description of the agricultural reclamation reform in the "No.1 Document" and the Third Plenary Session of the 18th Central Committee in 2015, the policy was raised to the adoption of the deep reform group meeting, which shows the importance attached by the central government to the agricultural reclamation reform, and does not rule out the possibility that the policy details disclosed in the later period exceed expectations.

At present, the problems of agricultural reclamation system are outstanding, and reform is imperative. Agricultural reclamation system is an enterprise management system created by China in a specific period, which undertakes many important social things and confuses government and enterprise management. Specifically speaking, the existing agricultural reclamation system has the following three outstanding problems: (1) confusion between government and enterprises, heavy social burden of agricultural reclamation office;(2) backward operation of marketization, curbing the efficiency of agricultural reclamation management;(3) defects in management system, resulting in serious losses of some agricultural reclamation enterprises.

We believe that this agricultural reclamation reform is expected to have a substantial impact on reclamation enterprises in the following aspects: (1) injection of high-quality assets of the group. According to the reform direction of "collectivization of reclamation areas", agricultural reclamation should realize the separation of government functions and operating assets, and high-quality farms, enterprises and other assets of agricultural reclamation system in the future are expected to be integrated into the platform of listed companies. (2) Introduce private capital to stimulate enterprise vitality. According to the reform direction of "equity diversification", reclamation enterprises will attract private capital to settle in, improve management level and operation efficiency, and stimulate the vitality of reclamation enterprises. (3) Marketization is further promoted. According to the reform direction of "farm enterprise", the land rent in reclamation area will be market-oriented pricing, which is conducive to releasing the profit space of land and reflecting the reasonable value of land. (4) Capitalization of land. This agricultural reclamation reform policy does not rule out the possibility of delegating land ownership to the reclamation area level, releasing long-dormant land resources, which is conducive to the capitalization of agricultural reclamation land through securitization, asset mortgage, trust circulation, etc., and at the same time, it will also integrate and inject land assets stored in reclamation areas.

Key recommended targets: Beidahuang_Company and Group have abundant land assets, and will continuously promote equity diversification reform in the future; Agricultural Development Seed Industry_Group asset injection is expected to be strong and is expected to become an integrator of land asset securitization in the future.