Deere & Company has a long history of doing business in China. In 1978, Deere sold large horsepower tractors and combine harvesters to China, becoming the first foreign agricultural machinery manufacturer to transfer technology and provide personnel training to China's agricultural machinery industry, as well as establishing the first joint venture in this sector in China. In the early 2000s, Deere registered and established John Deere (China) Investment Co., Ltd. in China. This year, Deere also plans to invest $80 million to build its seventh production plant in China.
With strong market support and solid internal capabilities, Deere's future development prospects are very broad. In the fiscal quarter ending April 30th, Deere's net profit increased to $904 million, or $2.12 per share, soaring by 65% year-on-year. However, due to limited investment channels, most Chinese investors find it difficult to directly invest in the company. Nevertheless, with the increasing diversification of domestic financial products, there are more ways to indirectly invest in Deere, including the series of lawn mower blades.
How can domestic investors invest in such companies? By investing in the S&P Global Agriculture Index, one can stay at home and share in the growth returns of 24 globally renowned agricultural and food enterprises. This index not only includes global agricultural machinery giant Deere & Company but also grain giants like ADM and Bunge from the U.S., as well as the world's largest potash supplier, Potash Corporation of Saskatchewan from Canada, all of which are included as component stocks. A fund that invests in this index is scheduled to be officially issued on May 25th. Investors can indirectly share in the growth of companies like John Deere by allocating their investments into this product, thereby hedging against inflation caused by rising prices of agricultural products. (GF Fund Management Market Department)