The Hainan Provincial Department of Agriculture agreed to join hands with Kelly Yifang Capital Management Co Ltd in Haikou on Tuesday to establish a provincial rural revitalization development fund, which will help solve the problem of capital shortages in rural development.

The total amount of the fund will reach 100 billion yuan ($14.74 billion), and the initial capital scale will be no less than 10 billion yuan.

At the signing ceremony, an official from Hainan's agricultural department suggested that the fund will be mainly used in green agro-product processing, beautiful village construction and off-season breeding.  

According to a Kelly representative, the company is professional in private equity management and it has united with central financing institutions and related leading industrial enterprises to launch the fund for Hainan's rural revitalization.

The fund also will be used for targeted poverty alleviation, farm-sharing tours, ecological and circulatory agriculture, pollution control, produce deep processing, cold-chain logistics service facilities, farmer training schools and famous brand high-quality product industrial chain development.

The company plans to set up a branch within one month for the new fund and pick some quality projects of Hainan's agricultural industry.

Since last October, the agricultural department has built a rural revitalization demonstration area at Boao town and started construction of beautiful villages across the island province.