By Zhang Liping & Sun Fei, Research Institute of Finance, DRC

Research Report, No.269, 2021 (Total 6334) 2021-9-16

Abstract: To resolve the fundamental issue about agriculture, rural areas and farmers, China’s central leadership has brought up the rural rejuvenation strategy at the 19th CPC National Congress. Rural rejuvenation requires motivation from all sides, especially from state-owned capital that serves as a platform. It is found in the special study of “Old City with New Vigor” carried out in Guangzhou municipality that local state-owned capital has established through fund operation a platform for win-win cooperation and resource reorganization between governmental departments, rural collectives, villagers and market capital, which proves an effective model for high-quality rural development. The role of state capital has been fully leveraged as a result of putting villagers’ interests first, meeting the needs of development and industrial upgrading for the entire city, and strengthening management and control of investment risks. The following measures are suggested by the case study: clarifying the positioning of state-owned capital in rural rejuvenation and enhancing infrastructure construction that is conducive to leveraging the role of state-owned capital, encouraging local state-owned capital to develop projects based on rural urbanization level and industrial features of different localities, putting villagers’ interests first, innovating the capital operation model, and strengthening risk control.

Keywords: state-owned capital, rural rejuvenation, the model of Hengjian, Guangdong province