SZSE successfully launched the first rural revitalization bonds on June 16 to implement the decisions and plans of the CPC Central Committee and the State Council on aligning efforts to consolidate and expand the achievements in poverty alleviation with efforts to promote rural revitalization.
The rural revitalization bonds are rolled out, on the basis of the poverty alleviation bonds, to support issuers in investing raised funds in rural revitalization related fields, consolidate the achievements in poverty alleviation through market-based means, and serve the implementation of the rural revitalization strategy. Under the guidance of China Securities Regulatory Commission (“CSRC”), SZSE has developed and launched the rural revitalization bonds to raised funds mainly for the development of agriculture, rural areas and farmers, and for construction, operation, and acquisition of rural revitalization projects. That will help improve the areas of weakness in the development of agriculture and rural areas as quickly as possible, refine rural infrastructure, and revitalize various assets and resources, thus serving the modernization of agriculture and rural areas. The bonds will help funnel more social capital into rural revitalization sectors via different channels and break capital bottlenecks with a demonstration effect.
Guangdong Guangxin Holdings Group Ltd. issued CNY 500 million of rural revitalization bonds on SZSE. The proceeds will be used to increase capital in its wholly-owned subsidiary Guangdong Foodstuffs Import & Export Co., Ltd. and finally be invested in a pig farm modernization project, which is expected to revitalize rural areas around the project sites. The project will mainly be implemented in over ten key cities and counties under the rural revitalization strategy in the Pearl River Delta Economic Circle including East Guangdong and Northwest Guangdong. The financing will promote an integrated food supply chain that includes farming, butchering, processing and logistics in the rural areas, help create jobs, increase the per capita income of rural residents, and enhance the tax base of the local government, thus assisting in rural revitalization.
Next, SZSE will continue to study and implement in depth the guiding principles of the No. 1 Central Document for 2021 and conscientiously follow the plans and requirements of CSRC. We will, based on the actual needs of the rural revitalization strategy, fully leverage the capital market as a hub and its market-based advantages and combine the use of diversified equity and debt instruments to support technological innovation in agriculture and effective integration of agriculture with companies of innovation, creativity and originality and traditional industries that are deeply integrated with new technologies, new industries, new business forms and new models. We will also expand market-based financing channels for enterprises and projects relating to rural revitalization. We will consolidate and expand the achievements in poverty alleviation, align efforts in poverty alleviation with efforts in rural revitalization, and better serve the development of agriculture, rural areas and farmers, so as to help achieve modernization of agriculture and rural areas, and rural revitalization in all respects.
