context: Market response suggests traders see a recent policy move as likely to bail out large private pig farming companies from heavy debt resulting from African swine fever (ASF) and the pig cycle. Though policymakers’ interest in pushing financial institutions to support agribusiness is clear, policy effectiveness depends on whether and how banks respond and detailed regulatory measures yet to be drafted.

A set of ‘Guiding opinions on promoting rural revitalisation with financial services’ recently released by People’s Bank of China (PBoC), Ministry of Finance (MOF) and three other agencies, supports qualified agricultural companies going public. The document pushes for agribusinesses to list on domestic exchanges’ mainboards, small and medium enterprise board, growth enterprise market (GEM) and National Equities Exchange and Quotations (NEEQ). It also commits to opening up a ‘green channel’ for IPO, bond issuance and merger and acquisition of enterprises located in nation-level impoverished regions. A share values of agricultural companies, particularly in the livestock sector, have subsequently risen significantly, reports Guangzhou Daily.

Industry experts predict large private pig farming companies, including Wens Group and Zhengbang Tech, and agricultural enterprises with substantial online business components, like Dabeinong Group, are likely to benefit directly from related policies. Guangzhou Daily says commercial banks, financial organisations and insurance companies are focusing efforts on the pig farming sector as a key recipient of financial support.