(Yicai) Feb. 24 -- Several Chinese agriculture stocks surged after China released a comprehensive blueprint for rural development focused on technological innovation and agricultural modernization.

Shares of pantry staple food producer Shiyue Daotian Group [HKG: 9676] were trading up 11.8 percent at HKD6.34 (82 US cents) as of 3 p.m. today. Seed breeding firm Yuan Long Ping High-Tech Agriculture [SHE: 000998] closed 4 percent up at CNY11.31 (USD1.56) today. Agricultural machinery manufacturer First Tractor [SHA: 601038] climbed 1.6 percent to CNY15.18.

The 'No. 1 central document' released yesterday is China's central government's first policy statement for this year. It emphasizes the importance of developing new quality productive forces in agriculture in light of local conditions for the first time and calls for the cultivation of leading high-tech agricultural enterprises and the acceleration of breakthroughs in crop varieties.

Developing new quality productive forces in the agricultural sector includes using biotechnology in seed breeding, drone technologies, artificial intelligence, and digital technologies, which can change the development of agricultural production by accelerating the industry's modernization, said Jin Wencheng, director of the Research Center for the Rural Economy of the Ministry of Agriculture and Rural Affairs.

This year will be the fifth of China's seed industry revitalization initiative, so the document called for more sustained advancement of the biological breeding industrialization, according to Dongguan Securities.

In the future, China will continue to further research and develop key core technologies in seed sources and promote the industrialization of biological breeding, which can ensure food security and enhance the competitiveness of grain research and development, Dongguan Securities predicted.

Moreover, the document lays out initiatives spanning food security, poverty prevention, infrastructure development, and financial support, including expanding rural cold-chain logistics, modernizing retail services, reforming rural housing utilization, and strengthening water resource management.

It also introduces mechanisms for financial support through government bonds and monetary tools, while promoting rural-urban integration by including qualified migrant workers in urban housing policies.

The overall valuation of China's agricultural sector is at a historical low. But supported by this comprehensive policy blueprint, agriculture is expected to experience a rebound, according to research reports.

Compared with the past 21 'No. 1 central documents,' this year's provides relatively stronger investment opportunities for the agricultural sector, GF Securities said. The main fields to pay attention to are agricultural product processing, livestock farming, and seeding, particularly biological seed breeding, the securities firm noted.

Editor: Futura Costaglione