Lei CAI spoke at China Modern Agriculture Industry Investment Forum 2009
Hosted by The Economic Observer, etc.
Jiuding Capital’s Executive President Mr. Lei CAI pointed out at China Modern Agriculture Industry Investment Forum 2009 that modern agriculture was in a key point of reform amidst the economic crisis and the following five advantages made capital intervention inevitable.
1. The industry is significant in size, which covers production and circulation fields that can be subdivided into a great deal of segments, providing a wide stage for capital operation.
2. Market mechanism has become the basic factor of resource allocation and Chinese-specific small-scale peasant economy mode been changed significantly, providing basic conditions for capital flow, economic development or depression and interest guarantee.
3. Obviously agricultural development lags behind other industries and the development and profit spaces are highlighted.
4. More and more agricultural technical progress, mode innovation and industrial integration can be found, intensification has become the trend and it’s possible to make capital intervened massively.
5. National support is intensified and public and private resources are shared, which will trigger a stronger breakout during industrial development. However, we must maintain keen vigilance at overheated investment and excess capacity.
Mr. Lei CAI explained that modern agriculture was still lagging behind businesses of secondary industry although it has developed to a certain degree in China. It’ll affect the operation of overall economic system if it cannot be solved. On the other hand, unbalanced development would lead to the reform of modern agriculture. Therefore, the intervention of private equity is very important to improving inadequate development, promoting the progress of modern agriculture, innovating industrial modes and integrating industrial chains.