Near-shore and offshore aquaculture has been identified as an investment target by one of China’s largest investment groups.
Qingdao Guo Xin Development Group, a state investment vehicle and real estate developer in Qingdao, has been constructing artificial coral reefs and inserting aquaculture cages as part of a CNY 6 billion (USD 873.9 million, EUR 766.8 million) investment that will include hatcheries, cold chain logistics as well as related tourism projects.
The Guo Xin Group, which financed and built key Qingdao infrastructure projects including the city’s subway system, has developed office and industrial properties and has been casting around for investments in the food and leisure sectors. The aquaculture project will encompass 4,000 hectares of sea, while holiday resorts will be built on adjacent islands off the coast of Qingdao. A hatchery and trading center will also be built.
Guo Xin’s entry into the space is significant, as it suggests top-level government support for marine-based aquaculture and a confidence in the profitability of the sector. But Guo Xin’s entry also poses challenges for other players given the state entity’s proven access to finance and land.
Seafood will become a new driver of profitability for his group, Guo Xin CEO Wang Jian Hui told Qingdao TV news recently as the firm unveiled plans for seafood and related health and medicinal products through its new venture.
