China’s business tycoons are eyeing the modern agricultural sector as an alternative investment. Many of them told CCTV at the network’s Financial Forum, that there is still huge potential untapped in the country’s rural economy.
Kiwi fruit is the next big investment target for IT giant Lenovo.
The company has newly favoured the agricultural sector, due to opportunities that may emerge from land reforms recently laid out by the third plenary session.
Chairman of the board Liu Chuanzhi said the timing now is ripe for brand building.
"Traditional agricultural sector was a saturated market with very low profit margin. After the third plenum meeting, there was an evident signal on land reforms where rural land right is allowed to transfer. This gives us the chance to build a brand that reflects high-quality and safe products. This will lay corner stones for high profit margin." said Liu.
Minsheng Bank, China’s first commercial bank held by private equities, is setting its eyes on deep ocean fish. But its ultimate goal is to expand financial services to the countryside.
Experts say the biggest challenges faced by China’s agricultural sector is the lack of funding. The industry is currently in the transition of integrating into a modern production system, and more capital would be needed to boost growth.
Source: CCTV
