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        China unveils guideline for rural asset share-holding reform

        Xinhua | Updated: 2016-12-30 10:53

        BEIJING - China has unveiled a guideline on reforming collectively-owned rural assets based on a shareholding cooperative system.

        Farmers can voluntarily turn their rights in collective operating assets into shares and acquire corresponding revenue, according to a guideline jointly released by the Communist Party of China Central Committee and the State Council on Thursday.

        The guideline suggested problems of unclear ownership and operation revenues of operating assets, calling the reform significant in safeguarding farmers' benefits and increasing their property incomes.

        China will finish the reform in five years, with a focus in suburban and economically developed villages that own operating assets.

        Small-scale pilot schemes have begun since May 2015, allowing farmers to own, benefit from, collateralize and inherit shares.

        Rural collective assets consist of resources assets, non-operating assets and operating assets including for-profit houses, buildings, agriculture infrastructures and collectively-funded enterprises.

        China adopts a three-pronged approach in regulating these three kinds of assets, with operating assets on the forefront of this latest reform.

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