Liu Yonghao, founder of China's leading agribusiness conglomerate New Hope Liuhe Co, Wednesday announced he would retire as the company's chairman. His 33-year-old daughter Liu Chang will take over and serve as co-chairman of the company.

Chen Chunhua, a member of the board of directors, has been named another chairman of the company. Chen was also named CEO of New Hope, media reports said.

Liu Yonghao, 62, ranked 45th on the Forbes 2013 Chinese rich list, with total assets of $3.8 billion. He established the New Hope Group in 1982, which has now grown into China's largest fodder producer.

Media reports said that 67-year-old Zong Qinghou, chairman of beverage maker Hangzhou Wahaha Group and also the richest mainlander, is also prepping his daughter to take over the company.

"It is natural for most mainland entrepreneurs to choose their offspring as successors, as the professional executive system is still not very developed here," Zhou Jiangong, editor-in-chief of Forbes Chinese version, told the Global Times.

As an only child, Liu Chang was sent to New York for schooling when she was 14 years old. After that she went to Beijing and finished her college education at China Foreign Affairs University, before pursuing an MBA at Peking University.

Liu Chang has been working in different departments of New Hope. She has rotated in a dairy subsidiary, a real estate subsidiary as well as an investment arm of the company.

"Liu Yonghao has made great efforts to cultivate his daughter as his successor… and I think he will also aid her with management decisions after his retirement," Zhou noted.

Wang Danqing, partner of Beijing-based ACME consultancy, told the Global Times that as the first generation of entrepreneurs in China comes close to retirement, succession has become a pressing issue.

"But many second-generation rich in China have been reluctant to carry on their parents' careers," Wang noted.

Several big shots announced to retire recently, such as Alibaba's Ma Yun and Giant Group's Shi Yuzhu. Differing with the company founders mentioned above, they both retired at a young age and have chosen founding partners as their successors.

Zhou from Forbes noted that Internet companies are not family-run businesses, thus it is easier for the founder to let go of power.

Industry watchers said that Liu Yonghao may pursue a political career after he retires, as he was a former member of the eighth to 11th CPPCC National Committee, but not a member of the current 12th. 

Liang Jialing contributed to the story