Shanghai Rural Commercial Bank teams up with Shanghai Agricultural Products Exchange to launch Shanghai's first facility agriculture mortgage authentication and financing business.

(Source: Economic Daily)

Reprinted from: Economic Daily

Recently, the reporter learned from Shanghai Rural Commercial Bank that the bank has deepened cooperation with Shanghai Rural Property Exchange (hereinafter referred to as “Shanghai Rural Exchange”) to innovate and implement Shanghai’s first agricultural land and above-ground facility agriculture mortgage certification financing business, providing key financial support for Shanghai Lianzhong Edible Fungi Cooperative.

The reporter was informed that Shanghai Lianzhong Edible Fungi Cooperative (hereinafter referred to as “Lianzhong Edible Fungi”) located in Jinshan District specializes in industrialized cultivation of button mushrooms, with over 50 modern mushroom houses and more than 30 fermentation tunnels built. The development of Lianzhong Edible Fungi relies on continuous financial support. Since 2018, Shanghai Rural Commercial Bank has established credit cooperation with the cooperative, gradually increasing support as its business expanded, and has provided industry chain financial solutions to empower regional development during its efforts to drive surrounding mushroom farmers to transform and upgrade together.

However, as production scale expands, issues such as difficulty in confirming agricultural assets and asset disposal have become increasingly prominent. To address these challenges, Shanghai Rural Commercial Bank collaborated with Shanghai Rural Exchange to conduct research and demonstration, jointly launching the “Bank Mortgage Financing + Transaction Certification Service” model. This model innovatively introduces Shanghai Rural Exchange’s mortgage certification and public disclosure process on top of the bank’s existing mortgage relationships.

At the same time, Shanghai Rural Exchange provides mortgage certification registration services for “land management rights + above-ground facility agriculture” combined mortgages, and records relevant information into the city-wide unified rural property transaction system for public disclosure. This effectively enhances the publicity and credibility of mortgage rights, providing a more secure institutional arrangement for bank credit assets. Additionally, leveraging Shanghai Rural Exchange’s role as the city’s sole platform for rural land transfer transactions, a transaction closed-loop has been established with “mortgage certification + transfer guarantee” at the front end and disposal at the back end, significantly improving the efficiency of post-loan asset disposal. The market-oriented transfer functions of Shanghai Rural Exchange, which are standardized and open, help ensure the liquidity and value realization of mortgaged assets, reducing banks’ credit risks from a mechanism perspective and addressing the core concerns of financial institutions about “daring to lend and willing to lend.”

The successful implementation of this business marks a concrete practice by Shanghai Rural Commercial Bank and Shanghai Rural Exchange in actively implementing the rural property system reform in Shanghai, guiding financial resources toward key areas of rural revitalization. It has built a comprehensive agricultural financial service chain covering “value discovery, mortgage registration, credit support, and transfer guarantee,” forming a closed-loop management system from credit issuance to risk disposal.

In the future, Shanghai Rural Commercial Bank will continue to deepen cooperation with Shanghai Rural Exchange and other institutions, promoting this innovative service to more key agricultural areas such as live livestock and poultry, idle rural houses, and more. It will continuously enrich the product matrix for revitalizing rural assets, providing more targeted, flexible, and professional financial services for various agricultural operators, and injecting continuous financial vitality into the high-quality development of modern urban agriculture and comprehensive rural revitalization in Shanghai. (Reporter: Tang Yilu, Economic Daily)