CMBC Investing 50 Billion Yuan for Tea Industry Upgrading
2011-12-1
Nov. 29, 2011 China Securities Journal by Zhang Chaohui
CHINA SECURITIES JOURNAL China Minsheng Banking Co., Ltd. claimed in the "Fist (Xiamen) International Tea Finance Forum" Nov. 29 that it would invest RMB 50 billion within a few years to fully support ten enterprises’ efforts to be even more stronger.
In the "Fist (Xiamen) International Tea Finance Forum", the theme of which was "to promote the upgrade of tea industry through financial integration", Xiamen Municipal Government, China Minsheng Banking Co., Ltd., and Cross-strait Tea Culture Exchange Association signed a cooperation memorandum, marking a formal start of the preparatory work of "Xiamen Tea Trading Centre".
Urgent need to revive the tea industry of the tea power
China is the hometown of tea and a tea production, consumption, and export power in the world. As of 2010, the growing area of tea plant accounted for 50% of the world’s total, and tea production, about 31% of the world’s total. However, compared with tea production areas in the rest of the world, such as India and Sri Lanka, tea growing areas in China are more scattered, lower in scale and levels. The output value of the largest tea enterprise in China is hardly 10% of that of "Lipton". The overwhelming majority of tea enterprises in China today are small and medium-sized ones and SMEs that encounter a lack of collateral and financing channels. They need a lot to seek private usurious loans at high cost pressure to solve financing problems.
In recent years, the government has attached great importance to the development of tea industry. In 2009, the Ministry of Agriculture formulated and issued "Key Regional Tea Development Plan in China (2009-2015)". In 2011, the tea industry was included in the "12th Five-year" of agriculture development. Governments of major tea-producing regions also stepped up the development or revision of regional development policies of tea industry. Tea industry has become an important industry to boost modern agriculture, develop the rural economy, and promote farmers’ income.
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