From Mar 2008, mixed policies on grain security have been carried out by the government. Main grain production areas like Heilongjiang, Jilin, Jiangxi and Henan consecutively put forward long-term layout and detailed moves for production increase; meantime, National Layout for Supplementary 50bn KG Grain Production Capacity (2009-2020) was being compiled.
It brings huge opportunities for investment; we believe attention should be given to: Heilongjiang Agriculture (600598) with rich land resources and other quality seeds companies, such as Yuan Longping High-Tech Agriculture (000998), Shandong Denghai Seeds (002041) and Gansu Dunhuang Seed (600354).