On July 30, 2025, the Ministry of Agricultural and Rural Affairs (MARA) and the People's Bank of China (PBC) jointly issued the Opinions on Strengthening Financial Services for Rural Reform and Advancing All-around Rural Revitalization (hereinafter referred to as “the Opinions”). It is an effort of the country to further implement the all-around rural revitalization with financial measures which will optimize financial service systems of rural areas and enhance the efficiency of the allocation of financial resources.   

The Opinions is a comprehensive high-level policy that lays out 17 specific tasks in 7 chapters, and the overall tasks of the document can be summarized as:

·         Strengthen financial support for food security, increase credit resources for major grain-producing areas and counties, and deepen financial services for high-standard farmland and farmland water conservancy construction.

·         Expand mortgage and guarantee methods, innovate financing models and exclusive financial products for locally specialized goods or cargos in rural areas, enrich the supply of financial products such as bonds and wealth management, so as to support the expansion of farmers' income channels. 

The policy document puts forward measures that MARA and PBC shall take to achieve the tasks:

·         Enhance the level of financial services for rural construction: adopt methods such as investment-loan linkage, formation of syndicated loans, and bundling and packaging of projects to provide diversified financing solutions, and support the extension and coverage of infrastructure and public services to rural areas.

·         Provide comprehensive financing services such as bond financing, equity investment, fund trusts, and financial leasing based on local conditions to support the integrated development of urban and rural areas in counties and the construction of new urbanization. 

The Opinions provides overall guidelines on practice that different levels of government and financial institutions are encouraged to do:

·         Encourage relevant departments on the local level to explore the establishment of management systems for the confirmation of rights and issuance of certificates, mortgage registration, etc. for agricultural facilities and live livestock and poultry, so as to expand the coverage of mortgage financing, and promote the activation of rural resources and assets.

·         Strengthen the application of risk compensation, loan interest subsidies, incentive rewards and other measures, and encourage government-backed financing guarantee institutions to play a role, to support various agricultural business entities in financing.

·         PBC shall enhance coordination and cooperation with other national ministries such as MARA etc., focus on serving rural reforms, and use reform methods to enhance financial support for the agricultural industry.

Manufacturers of relevant product service chain, service providers of related sectors, and financial institutions together with investors that focus on agricultural sectors in China, are advised to be aware of the potential changes that shall bring by the Opinions.

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