Beijing Municipality urges its agricultural firms to go public - expert
Beijing. May 12. INTERFAX-CHINA - The Beijing municipal government is encouraging 26 agricultural product processors in its jurisdiction to raise capital through public listings within the next five years, an industry expert told Interfax May 11.
Agriculture product companies that complete listings within the timeframe will be eligible to receive funds from a RMB 500 million ($76.95 million) capital pool made available by the Beijing municipal government, according to Shi Yajun, director of urban agriculture industry at Beijing Agriculture College.
Shi did not disclose the names of the 26 firms.
Beijing has more than 1,700 agricultural product processors, said Shi at the Second Modern Agriculture Industry Forum in Beijing.
Small-scale Chinese agricultural companies are struggling to raise capital or obtain financing due to their size and low profit margins, said Chen Shuwei, an analyst with Beijing Orient Agribusiness Consultant Co. Ltd.
- LX