More Capital to Develop China's Agriculture Demanded

Deputy Director of NPC Financial Commission Li Yining lately pointed out that it is completely necessary to develop futures business of agricultural products and clear the way for a smooth flow of capital into the agriculture field in China.

Li made this remark at a senior seminar on China's Agricultural Economy and Capital Market in the 21st Century called by Asian Capital Forum in Beijing.

Li Yining said that recent survey reveals that China's agriculture is facing an austere situation as this is shown by an obvious slowdown of Chinese farmers' income growth and a general shrink of rural enterprises in many places in China. What's more, China's entry into WTO will definitely pose new challenges and will exert great impacts on China's grain, fruit, meat and milk products supply. To speed up economic development in rural areas has certainly become urgent, he said.

Firstly, how to develop economy in the rural areas. Li Yining said to develop futures business of main agricultural products is highly necessary since the current commodity futures business system is not much reasonable when some main agricultural products are excluded. He further reiterated that a futures business market for main agricultural products will be opened sooner or later and it can help farmers to obtain more market information in developing China's agriculture.

Secondly, how to promote a smooth flow of capital into agriculture. Though there are a small number of agricultural companies seeking development in agriculture field, yet the number is far from enough. Li said these companies should be encouraged to make more investment in setting up subsidiary companies in contributing to China's development of agriculture and that we should take advantage of the re-financing of the capital market to make more investment in agricultural field. Meanwhile, due attention should be given to agricultural technology innovation and development and production of new products to ensure higher long-term benefits to be achieved in agriculture.

Li also said that the development of agriculture demands full use of the Internet and that he will not regard Internet as one representative of economic bubbles for it has at least cut trade costs and improved information flow in addition to a reduction of trade risks to be involved.

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