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“Financial Vitality” – Part One of the Series on Wanshan: How Wanshan Is Tackling the Financing Challenges in Animal Husbandry

Editor’s Note: Wanshan District has innovated a mechanism—“government provides the platform, banks and insurance companies collaborate, technology empowers, and chain enterprises work together”—breaking the longstanding restriction that live livestock cannot be used as collateral. This initiative effectively addresses the common challenges faced by livestock enterprises and farmers, such as difficulty in obtaining financing, high financing costs, and low credit limits, thereby injecting fresh financial vitality into rural revitalization. Starting today, the Wanshan District Media Center will launch a three-part series titled “Financial Vitality Nourishes Wanshan,” focusing on how government, finance, and enterprises are collaborating to innovate live-livestock collateral policies; how financial institutions are translating these policies into concrete support for businesses; and how enterprises are leveraging loan funds to develop their industries. The first installment explores “How Wanshan Is Solving Financing Challenges in Livestock Raising.” Recently, at the 2025 Government-Finance-Enterprise Symposium and the Launch Event for the Pilot Policy on Live-Livestock Collateral Loans held in Wanshan District, Tongren Rural Commercial Bank, Guizhou Huacheng Animal Husbandry Co., Ltd., and Wanshan Ruichangfei Food Co., Ltd. signed on-site agreements for live-cattle collateral loans. This marks the official implementation of a new financing model in Wanshan District, integrating “live-livestock registration + bank credit + insurance coverage + technological supervision.” “In the past, when I wanted to expand my farm, I couldn’t get a loan because I had no collateral. Now, cattle can serve as ‘liquid assets,’ and the bank has directly granted me a credit line of 20 million yuan. The first tranche of 5 million yuan has already been credited to my account. With this, I feel much more confident about developing my business,” said Yang Dechang, Chairman of Wanshan Ruichangfei Food Co., Ltd., visibly excited. As the only A-grade qualified slaughtering enterprise in Tongren City, Wanshan Ruichangfei Food Co., Ltd. is currently upgrading its production lines to meet Hong Kong’s supply standards. Yang Dechang noted, “This time, we plan to use 1,000 cattle as collateral for financing, which saves us over 100,000 yuan compared to previous interest rates.” Moreover, several large-scale breeding enterprises upstream have also benefited from this model, and a new industrial cluster development model—“leading enterprise driving, collaborative efforts along the chain”—is gradually taking shape. For a long time, live livestock have been difficult to become acceptable collateral for financial institutions due to challenges in valuation, high risks, and complex regulatory requirements. To break through this bottleneck, the Wanshan District government took the lead in formulating the “Implementation Plan for Live-Livestock Collateral Loans in Wanshan District, Tongren City (Trial),” bringing together multiple stakeholders—including agriculture and rural affairs, finance, and insurance—to establish a comprehensive service mechanism covering the entire process from registration and assessment to credit granting, insurance, disbursement, and post-loan management. Zhang Jun, Deputy President of Tongren Rural Commercial Bank, explained that the bank has fully utilized the People’s Bank of China’s relending facilities to innovatively launch products with live cattle and other biological assets as core collateral. Through a “one-time credit approval, revolving credit usage” mechanism, the bank relies on a comprehensive service framework of “bank + insurance + live-livestock collateral + technological supervision”—employing IoT technologies like smart ear tags to dynamically monitor collateral—and pairs it with insurance risk protection. This effectively solves the dilemma faced by agricultural entities lacking traditional collateral, helping farmers boost their incomes and strengthening the “engine” of rural revitalization. According to statistics, since the implementation of live-livestock collateral loans, the bank has provided cumulative credit exceeding 30 million yuan, completed live-livestock registration for over 160 cattle, and helped three breeding entities overcome funding difficulties in purchasing live animals and during the breeding process. “From ‘live livestock cannot be collateralized’ to ‘live livestock can be monetized,’ we’ve used mechanism innovation to bridge the ‘last mile’ in livestock financing,” said Luo Jun, Deputy Director of the Wanshan District Bureau of Agriculture and Rural Affairs. This model has effectively addressed the challenges of difficult, expensive financing and low credit limits faced by livestock enterprises and farmers, injecting new vitality into the high-quality development of the livestock industry. Going forward, Wanshan District will continue to thoroughly implement the important instructions delivered by General Secretary Xi Jinping during his inspection tour of Guizhou Province, fostering and expanding new-quality productive forces, creating a favorable ecosystem with complete industrial supporting elements and obvious cost advantages, and propelling economic and social development to a new level. (District Media Center: Liu Xiaoxue, Pan Yanyu, Chen Liang) (Source: WeChat public account “Wei Wanshan”; if there is any infringement, please contact us for removal.)

2025-09-02

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Turning live cattle into “liquid assets” ensures that cattle farming is “well-funded”!

Editor’s Note “Even with a fortune in wealth, livestock with fur doesn’t count.” This common saying highlights the difficulties faced by those engaged in animal husbandry. Due to numerous challenges—such as limited fixed assets and difficulty securing third-party guarantees—the funding gap for purchasing livestock and feed has become a major hurdle for farmers seeking to expand production and increase income. “But now, even ‘livestock with fur’ can be counted as real, tangible assets! My farm will definitely be able to expand several times over…” Addressing Farmers’ Needs and Solving Loan Challenges Recently, Guizhou Huacheng Animal Husbandry Co., Ltd. successfully obtained a credit line of 10 million yuan from Tongren Rural Commercial Bank and secured its first live-cattle-backed loan of 2.106 million yuan, using 162 beef cattle as collateral. This loan will be used to pay an advance deposit to upstream enterprises for the purchase of 800 beef cattle. This loan marks the first-ever live-cattle-backed loan in the Wan Shan District beef cattle breeding supply chain, precisely supporting enterprises in expanding their production scale and fostering coordinated development across the upstream and downstream sectors. To address the pain points of “difficult financing and expensive collateral” faced by livestock enterprises, Tongren Rural Commercial Bank has innovatively launched the “Live Beef Cattle Collateral” loan product. This model takes living biological assets (beef cattle) as the core collateral and, through a “one-time credit approval, revolving credit use” mechanism, enables borrowers to complete loan application, collateral registration, and disbursement all on the same day, while also allowing borrowers to repay loans flexibly and as needed. Relying on a comprehensive service framework of “Bank + Insurance + Live-Cattle Collateral + Technology-Based Monitoring,” the product leverages IoT technologies—such as smart ear tags—to dynamically monitor collateral assets and provides complementary insurance risk coverage. This effectively addresses the dilemma faced by agricultural entities lacking traditional collateral, transforming “cattle production” into “assets” and turning “local cattle” into “golden cattle.” Fast Disbursement Helps Farmers Transform Tongren Rural Commercial Bank has extended a unified credit line of 37 million yuan to Guizhou Wanshan Ruichang Fei Food Co., Ltd.—the province’s leading slaughtering enterprise—and its upstream breeding companies, helping to build an integrated base covering “breeding-slaughtering-processing-cold-chain-sales.” As the city’s only A-level slaughtering enterprise, Guizhou Wanshan Ruichang Fei Food Co., Ltd. is currently upgrading its production lines to meet Hong Kong’s supply standards. Its upstream partners, including Huacheng Animal Husbandry and Zhonghua Agriculture—large-scale breeding enterprises—are simultaneously benefiting from this financial boost, forming a new industrial landscape characterized by “leading enterprise driving growth and collaborative chain enterprises working together.” Innovative Products, Excellent Service Traditional collateral often fails to meet enterprises’ financing needs. However, the emergence of the innovative live-cattle collateral model has brought new hope to Guizhou Huacheng Animal Husbandry Co., Ltd. Zhao Shiguo, the company’s head, said: “The live-cattle collateral has truly made us feel the convenience of turning ‘cattle assets’ into ‘liquid funds’! In the past, due to the lack of hard collateral such as factories or land, our financing channels were severely restricted. Now, thanks to the live-cattle collateral loan, not only are the procedures simple and interest rates favorable, but we’ve also promptly addressed the funding gap for procurement. This loan provides solid support for expanding our breeding scale, and we’re full of confidence in deepening our involvement in the beef cattle industry and boosting regional incomes!” With the financial support of Tongren Rural Commercial Bank, beef cattle farmers are brimming with confidence in their development. The successful launch of Tongren Rural Commercial Bank’s “Live Beef Cattle Collateral” loan product has opened up a brand-new path to solving the longstanding challenges of “difficult loans, difficult guarantees, and difficult collateral” in the traditional livestock industry. By leveraging financial innovation, the bank is putting into practice the concept of “turning cattle production into assets and assets into funds,” laying a solid foundation for the scaled and standardized development of the beef cattle industry in Wan Shan District. Contributed by: Tongren Rural Commercial Bank Edited by: Xiao Yin Reviewed by: Wang Wenping (This article is sourced from the “Guizhou Rural Credit” official account.)

2025-08-04

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