Give birth to homeopathy for the sake of "Agriculture"-- the Development of China's Agricultural Industry

In order to innovate the way of financial support for agriculture and give full play to the guiding role of financial funds, the Ministry of Finance, in accordance with the spirit of the document No. 1 of the Central Committee and the plan approved by the State Council, together with shareholders such as China Agricultural Development Bank, China Cinda property Management Co., Ltd., and CITIC Group Co., Ltd., initiated the establishment of the China Agricultural Fund at the end of December 2012 and carried out substantive operation in 2013.

According to the establishment plan of the China Agricultural Fund, the basic goal of the fund is to realize the organic combination of policy guidance and market management, to drive and guide social funds to invest in "agriculture, rural areas and farmers", and to emphasize the premise of persisting in serving "agriculture, rural areas and farmers". Decision-making and management in the market way to obtain a stable market average return.

Never forget the original ideal and ambition to integrate into "agriculture, rural areas and farmers" to help development

Explore the ways of finance and finance to support agriculture and broaden the financing channels of agricultural industry. The government's direct investment in agriculture is faced with the problems of limited funds and the efficiency of the use of funds. Through the market-oriented investment and financing behavior of funds, limited funds can pry financial capital investment into "agriculture, rural areas and farmers". With a capital of 4 billion yuan, the China Agricultural Fund has signed strategic cooperation agreements with many financial institutions, such as the Agricultural Bank of China, the Construction Bank, the Bank of Communications, the Everbright Bank, and other financial institutions, and leveraged about 70 billion of credit funds by combining investment and loan. give full play to the effect of financial "introduction" funds to guide social financial capital to be invested in agricultural domain. At the same time, the free use of funds into a certain return on investment constraints, encourage leading enterprises in agricultural industrialization to improve production and operation efficiency, and then improve the efficiency of the use of financial funds.

Give full play to the role of demonstration and guidance, and set the development direction for agricultural industry investment. China Agricultural Fund was set up for the cause of agriculture, rural areas and farmers. compared with other funds, China Agricultural Fund has the natural advantages of long investment period, low investment return and strong ability to withstand wind insurance. it is more matched with the characteristics of long investment cycle, limited income and high risk in agriculture, so it can explore and cultivate modern agricultural enterprises with better growth and strong leading role. The fund is based on the characteristics of equity investment and gives full play to its professional advantages in the field of agricultural investment. from more than 1000 agriculture-related enterprises investigated by households, through the selection of project collection, due diligence, project valuation and other links, the fund made decisions and invested in 17 of them. Social capital voted "yes" to the enterprises selected by the fund with practical actions. for example, Morgan Stanley invested 250 million yuan in Inner Mongolia Horqin cattle Co., Ltd., and the fund joined six market-oriented investment funds to invest more than 3 billion yuan in Sichuan Fuhua Tongda Pesticide Technology Co., Ltd., and so on.

Improve the development level of agricultural industrialization, at the same time, achieve their own commercial sustainability. Through equity investment, the fund establishes a market-oriented operation mechanism of "income sharing and risk sharing" with the invested enterprises, providing one-stop services such as capital and technology, management consulting, customer grafting and capital market financing to the invested enterprises. from the market, sales, finance, research and development, marketing to the financial field, to provide professional guidance for enterprises. By providing a variety of value-added services to agricultural leading enterprises, it has not only enhanced the enterprise value and the development level of agricultural industrialization, but also promoted the value-added of the fund. According to the audited financial report, the net profit of the China Agricultural Fund in 2013 and 2014 was 9.1525 million yuan and 38.8381 million yuan respectively, and the rate of preserving and increasing the value of state-owned capital was 100.10% and 102.41% respectively. By the end of 2014, the net assets of the fund reached 4.05 billion yuan, initially achieving its own goal of commercial sustainability.

International cooperation "Belt and Road Initiative" spread all over the world

Help the Silk Road Economic Belt and promote the development of rural economy in the western region. At the end of 2014, in Xi'an, the starting point of the Silk Road Economic Belt, the China Agricultural Fund held a strategic cooperation signing ceremony with the Shaanxi provincial government and Shaanxi Haisheng Fruit Industry Development Co., Ltd. to jointly fund the establishment of Shaanxi Apple Industry Group. As the founder of the group, Shaanxi Haisheng Fruit Industry Co., Ltd. is the world's largest manufacturer of concentrated apple juice, and its products have been sold in Europe, the United States, Southeast Asia and more than 20 countries. According to the cooperation agreement signed, according to the registered capital of 430 million yuan, the three parties contributed to the establishment of Shaanxi Apple Industrial Group. By investing in and setting up industrial groups, making use of the modern enterprise management system, popularizing and applying excellent varieties and production technologies such as dwarf rootstock apples, promoting the transformation and upgrading of the apple industry in Shaanxi Province, and promoting the development of the national fruit industry by demonstration, we will send more and better products to the world through the Silk Road.

Promote international cooperation in production capacity and develop the marine economy. At present, with the accelerated development of global economic integration and the accelerated flow of high-quality resources in the global agricultural industry chain, with the full implementation of the "Belt and Road Initiative" national strategy and the rapid promotion of the "going out" strategy, international agricultural cooperation on a larger scale, at a deeper level and at a higher level is imperative. In 2015, the China Agricultural Fund continued its investment strategy of focusing on leading agricultural enterprises, focusing on the combination of social and economic benefits, the regional selection of the eastern, central and western regions, the combination of large, medium, small and medium-sized projects, and the combination of investment pull points, looking for bright spots, seeking innovation and breakthrough, and prudent investment, which further expanded the social influence of the fund. For example, 400 million yuan was invested in Fujian Pingtan Ocean Fisheries Group Co., Ltd., the largest private ocean fishing enterprise in China, driving nearly $1 billion in social capital investment.

Carry out international technical cooperation and develop modern agricultural science and technology. The enterprises supported by the China Agricultural Fund promote the modernization of agricultural science and technology in China through international technical cooperation. Tianjin Leiwo heavy Industry Group, which is invested by the fund, is a leading agricultural equipment manufacturing enterprise in China. By setting up global R & D centers in Italy, Japan and other places, and implementing strategic cross-border mergers and acquisitions, narrow the gap with foreign competitors in technology and products. Through investment, China Agricultural Fund focuses on supporting basic research and development of Leiwo heavy Industries, gradually forming a truly globally competitive technical capability, thus leading to the improvement of the overall level of China's agricultural machinery and equipment industry. In addition, by supporting Shandong Kim Jong Da Group to carry out all-round cooperation with Israel, a country along the Silk Road Economic Belt, the China Agricultural Fund has actively promoted the process of water and fertilizer integration in China, opened up a new type of water-saving agricultural market, and benefited the broad masses of farmers. it is of positive significance to control agricultural non-point source pollution and maintain China's food security.

Industrial upgrading, full coverage of agricultural e-commerce

Realize the full coverage of the e-commerce model of investment enterprises. Since 2014, Ali, JD.com, Shunfeng and others have launched rural strategies to pry open the dusty market. In order to adapt to this new trend in the rural market, the China Agricultural Fund has put forward clear requirements for every enterprise invested in: either to build its own e-commerce platform, or an e-commerce platform with mature enterprises, to achieve the binding and combination of offline sales and online sales. At present, the enterprises invested by China Agricultural Fund have perfect online sales system, which realizes the full coverage of e-commerce model.

Help investment enterprises to build an Internet of things platform. As early as 2010, the National Development and Reform Commission approved a number of Internet of things pilot projects, how to make Internet technology in the field of agriculture, is a new problem in front of the fund. In this regard, the China Agricultural Fund has also made a breakthrough. With the support of the fund, the Horqin cattle industry invested by the fund uses the Internet of things technology to establish a full-process traceability system. Each piece of beef is input into a bar code from feeding, slaughtering, acid excretion, beef parts, segmentation, storage procedures and quarantine procedures, and customers can find the information of beef products purchased with "ID cards" on the enterprise's quality monitoring website. It really realizes the monitoring of the whole process back to the source.

Build a new cooperation model of "Internet + industrial chain". The China Agricultural Fund has also joined hands with enterprises to build a new cooperation model of "Internet + industrial chain" to open up the procurement, production and sales links in traditional agriculture. in the production, marketing and cloud services of agricultural products, the traditional isolated agriculture has finally formed a complete industrial chain, which has been gradually cultivated in five or six fund investment enterprises. In July 2015, the China Agricultural Fund invested 300 million yuan in "Agricultural Merchants 1" and joined a group of investment institutions to invest in "Agricultural Merchants 1" with Kim Jong Da Group, the world's largest slow-release fertilizer manufacturer, with a first-phase investment of more than 2 billion yuan. "Agricultural Merchants 1" gathers a number of domestic and foreign agricultural materials industry champion brands, can successfully solve the problems of "the last kilometer" and "the last 100 meters", and sets up a national agricultural e-commerce team with the help of the great opportunity of Kim Jong-da Group, funds and other investment institutions to implement the "Internet +" national strategy.

Get rich together through public-private cooperation

The fund itself is a new exploration of public-private cooperation in the field of agricultural investment. At present, the enterprises invested by the fund are all private enterprises. in the way of "introduction" funds and "seed" funds, public finance promotes and guides the investment of all sectors of society in the field of agriculture. let private capital and other social resources enter the field of agriculture and achieve policy objectives. Horqin cattle industry invested by China Agricultural Fund takes the lead in practicing the model of "large planting driving large farming" in the industry to explore the road of sustainable development of China's beef industry. Through large-scale, intensive and mechanized forage planting, enterprises can reduce planting costs and breeding costs, and enhance the profitability of enterprises and the international competitiveness of our beef cattle industry. The fund's investment in Horqin cattle industry shows its support for this development direction, driving state-owned commercial banks and joint-stock banks to increase their trust in enterprises, as well as capital injection from international well-known investment institutions. By giving full play to the function of value discovery, the fund achieves the public goal of supporting the development of agricultural industry with a small amount of financial funds and social resources.

With industries and enterprises as the fulcrum, farmers can increase their income and become rich through public-private cooperation. In the field of agriculture, in order to improve the efficiency of the use of public resources, one of the most effective ways is to use industry as the combination of public investment and private investment. Through the investment in the leading enterprises of agricultural industrialization, the China Agricultural Fund has directly enhanced the financial strength of the invested enterprises, transmitted the modern management concept to the enterprises, and created economic benefits for the enterprises and the fund itself through the promotion of the equity value of the enterprises. at the same time, it indirectly supports the farmers connected by the enterprises and drives them to increase their income and become rich. Jilin Jinta Industrial (Group) Co., Ltd., invested by the fund, is the largest leading pepper enterprise in Northeast China, with 42500 pepper farmers and more than 150000 people contracted for a long time, and the radiation planting area of seedlings is 300000 mu, covering Inner Mongolia, Jilin, Liaoning, Heilongjiang and other provinces and regions. According to the statistics of Taonan City, Jilin Province, through chili planting, the total income of pepper farmers in the city has increased by 213 million yuan, with a per capita income of 1416 yuan. Anhui Longhua Bamboo Industry Co., Ltd. invested by the fund is located in Huoshan County, Anhui Province, and is the largest bamboo processing enterprise in the Dabie Mountains. The development and exhibition of the company has led to the development of the whole bamboo industry in and around Huoshan. Mao bamboo is in short supply from no one. Huoshan County has a net increase of 10 million more than 10-inch bamboo farmers' income of 165 million yuan a year, driving 100000 bamboo farmers in the county to become rich. Through leading enterprises, the fund pries the development of an industry and an industry for the fulcrum, drives the prosperity of agricultural economy in a region and a field, and really benefits farmers.