A series of central meetings are held soon, and the reform of land reclamation is expected to be a policy breakthrough.

Near December, a series of high-level meetings such as the Central Economic work Conference and the Central Rural work Conference will be held soon, and the reform of the rural land system, which is more concerned by the market, may be discussed emphatically.

China issued the Central No. 1 document with the theme of "agriculture, rural areas and farmers" (agriculture, rural areas, farmers) for 11 consecutive years from 2004 to 2014, highlighting the important position of the issue of agriculture, rural areas and farmers in the period of socialist modernization in China. This year, the central ministries and commissions have conducted intensive research on local land reclamation systems and drafted reform documents. At the central meeting at the end of the year, they will issue a plan for the reform of the land reclamation system and a series of new policies to support the development of land reclamation. The listed companies related to the local land reclamation system are expected to benefit obviously in the reform.

According to the Shanghai Securities News, the reform of the land reclamation system will stimulate the great development potential of state-owned land reclamation enterprises. According to relevant data from the Ministry of Agriculture, China's land reclamation system has 1785 state-owned farms, 6.12 million hectares of cultivated land (accounting for about 5 percent of the country's arable land), and more than 3200 state-owned and state-controlled enterprises, mainly engaged in agriculture, forestry, animal husbandry and fishery production, mainly grain and rubber. Qilu Securities Research believes that if the market-oriented mechanism can be used to improve the current planned economic system of land reclamation system, the resource potential of land reclamation enterprises will be further released.

From the reform and opening up in 1978 to the third Plenary session of the 15th CPC Central Committee in 1998, the central government carried out a series of market-oriented reforms to the land reclamation system, but the overall process was still slower than that of central enterprises and local state-owned enterprises. First of all, the vast majority of land reclamation enterprises should be placed under the management of the local SASAC, leaving only the Xinjiang Construction Corps, Guangdong Land Reclamation and Heilongjiang Land Reclamation under the management of the Central Committee or the Ministry of Agriculture. Secondly, gradually implement the separate management of management functions and social functions, but at present, there are still most grass-roots farms whose two functions have not been completely separated, which leads to the lack of marketization of the overall land reclamation system and the crux of low management efficiency.

According to media reports, since July this year, the "Research Group on Major issues of Land Reclamation Reform and Development," composed of the research office of the State Council, the Ministry of Agriculture, the Ministry of Finance, and other central agencies, has gone to various reclamation areas throughout the country to conduct research, paving the way for the next step in the reform of the land reclamation system. In accordance with the requirements of the leadership of the State Council, led by the Research Office of the State Council and the Ministry of Agriculture, and with the participation of the Central Agricultural Office and other relevant ministries and commissions, a total of eight research groups were formed and went directly to each reclamation area. the task is to carry out the investigation of major issues concerning the reform and development of land reclamation throughout the country and promote the drafting of relevant documents.

The direction of land reclamation reform includes promoting the demutualization reform of land reclamation enterprises, developing mixed ownership economy, introducing and using private capital to participate in the property right reform of land reclamation enterprises, and so on. Guoxin Securities research believes that land transfer will be taken over step by step by professional production cooperatives and large agricultural production groups. On the one hand, large agricultural production groups will benefit from the large-scale effect of land transfer, on the other hand, they will benefit from the improvement of management level brought about by the reform of state-owned enterprises.

Listed companies related to local land reclamation systems are expected to benefit significantly from the reform. Yasheng Group, a listed company under Gansu Agricultural Reclamation Group, is the forerunner of the reform of state-owned enterprises in the land reclamation system, and has been positioned as the land resources management and integration platform for Gansu agricultural reclamation. Hainan Rubber is the largest natural rubber production enterprise in China, and the company leases 3.53 million mu of land from Hainan Land Reclamation Group, a major shareholder, for rubber production. ST Beidahuang belongs to Heilongjiang Agricultural Reclamation. Beidahuang has 11.58 million mu of arable land and more than 1 million mu of wasteland. At present, the company is actively reorganizing its assets, and the next step will return to the main business and concentrate on developing the planting industry.