The director of Heilongjiang agricultural reclamation Sui Fengfu met a group of 4 led by the honorary chairman of YBN, Yang Li, at Heilongjiang agricultural reclamation base on Sept. 21, 2011. The Heilongjiang agricultural reclamation (the Heilongjiang Beidahuang Group) is centrally-administrated by ministry of agriculture. It is the largest state farm economic area and has the highest level of mechanization. The area is important base of commodity grain producing and byproduct processing of the nation.

 

Ms. Yang says the purpose of this visit is to understand the cooperation intention and find out the entry point in agricultural. CITIC YBN Capital Ltd. is a subsidiary company of CITIC Group and known for innovational agricultural finance model. The company successfully launched the first domestic agricultural industry fund that government participated in. It started a new operation mode of fund with a mix of private capital and government guide funds, linked with investing in local industries.

 

During the meeting, the general manager Sun Yeung Yeung gave an outline of Henan agricultural development industry investment fund that set up by YBN and Henan province government. The fund is mainly invested in equity of agribusiness (planting, processing and machinery, etc.) in and out of Henan. Exit routes include IPO and buyback.

 

Shen Guoyong from Harbin branch of CITIC bank summarized the cooperation mode of industry fund. YBN and Beidahuang Group could launch Heilongjiang agricultural industry fund and get guide fund from Heilongjiang province government. The fund could invest in medium and small agribusinesses that have potential. This will support the process of agriculture industrialization.