Chinese Agriculture Rallies on New Policy

|
 |  Includes: CGA, MON, MOS, POT, SEED
by: Kelvin Schulle

On Tuesday, the agriculture sector rallied on the Shanghai stock exchange. According to stockstar.com and xinhua news report the government released a new policy to invest in the agriculture sector to expand production and meet rising food demand in the country. It is also intended to boost income of the nation's 80% population who still live in urban areas. Economists believe it is also a necessary step and will boost domestic consumption of its own products if the average income comes up while the exports are declining. Pay attention to Chinese companies listed on Wall Street and companies who have market exposure in the Chinese market. Companies that may be affected are:

Monsanto (NYSE:MON)
Mosaic (NYSE:MOS)
Potash (NYSE:POT)
Origin Agritech (NASDAQ:SEED)
China Green Agriculture (NYSE:CGA)

Monsanto was recently said to be planning to expand their Chinese market by a takeover of local players. The agriculture sector is becoming an investment hot spot under the new government policy.

Disclosure: no position