China Pledges Stronger Financial Support for Key Agricultural Products

By Ella Cao, Yukun Zhang, and Kevin Yao

BEIJING, July 24 (Reuters) – China has pledged to increase financial investment to stabilize grain and other key agricultural product production, a government statement showed on Thursday, as part of its broader rural revitalization and food security strategy.

The government vowed to support the planting, purchase, sales, and processing of soybean and oilseed, the statement jointly issued by the central bank and the agriculture ministry showed.

China has intensified efforts to boost domestic grain output and diversify imports to secure food supplies for its 1.4 billion people and reduce the risk of disruptions amid ongoing trade tensions with key exporters like the United States.

The government also pledged to boost support for the livestock and aquaculture sectors, some of which are struggling with oversupply and weak demand.

In addition, financial institutions are encouraged to issue special bonds targeting agriculture, rural development, small and micro enterprises, and green development.

Authorities will also support eligible companies in issuing rural revitalization bonds to channel more funding into the countryside.

China’s commitment to agriculture is reflected in rising credit growth: the balance of rural loans totalled 38.95 trillion yuan ($5.44 trillion) by the end of the second quarter this year, up 7.4% year-on-year, according to central bank data.

The balance of rural households and agricultural loans rose 3.7% and 8.1%, respectively.

($1 = 7.1563 Chinese yuan renminbi)

(Reporting by Ella Cao, Yukun Zhang, and Kevin Yao; Editing by Bernadette Baum and David Holmes)