Agricultural Development Bank of China provides 42.5 billion yuan to help complete Xinjiang’s cotton procurement work
On August 13, the Xinjiang Uygur Autonomous Region Branch of the Agricultural Development Bank of China achieved “double zero” cotton purchase loans in 2020, marking the successful conclusion of the bank’s cotton purchase credit work last year.
In 2020, the Xinjiang Branch took the initiative to play its role as the main channel for the supply of cotton purchase funds, and provided a total of 42.5 billion yuan in cotton purchase loans to 143 companies, supporting the purchase of 3.57 million tons of cotton, accounting for 64% of the total cotton output in Xinjiang. %. Since the beginning of this year, affected by the new coronavirus epidemic, Sino-US trade friction and other superimposed factors, the cotton market situation has become increasingly severe. In order to reduce the operating risks of cotton companies and promote the sustainable and healthy development of the cotton industry, the Xinjiang Branch has taken multiple measures to support farmers’ sales and effectively protect the cotton farmers. Benefit.
Promote the expansion of channels for “value-preserved loans”. In order to effectively alleviate the pressure brought by concentrated spot selling on the cotton market, the bank actively promoted the cotton “value-preserving loan” business, combined the financial tool of cotton futures hedging with cotton sales, and gave full play to the futures market to discover prices and guide the market. , the positive role of avoiding risks, helping enterprises to broaden sales channels and speed up sales progress. As of the end of July, on-site and off-site hedging loan companies have registered and generated a total of 8,210 cotton futures standard warehouse receipts for 347,100 tons, helping companies make nearly 500 million yuan in profits.
Support “upstream and downstream” channels. Coordinate the use of business models such as cotton and cotton yarn “warehouse receipt loans” to promote the docking of cotton purchases and the production and sales of downstream textile enterprises, and revitalize cotton and cotton yarn inventories. It has successively supported a number of downstream companies in the industry chain such as Xinjiang Lihua Textile and Aksu Xinhao Textile, effectively alleviating the unsaleable problem of cotton downstream textile companies due to insufficient consumption and further improving the liquidity of the entire cotton industry chain. In addition, it also provides preferential interest rates to industrial chain enterprises, provides priority guarantees in terms of funds, and implements priority acceptance in processes, etc., which can effectively reduce costs and bring benefits to enterprises.
Strengthen supervision and find the right channels. Through discussions, visits, etc., we establish a good communication mechanism with enterprises to help them conduct rational analysis and prediction of the market and guide them to operate steadily. At the same time, based on the company’s implementation of sales contracts, a balanced sales plan is formulated for each company, focusing on promotional loan collection and inventory supervision of key companies, establishing a sales loan repayment ledger, and monitoring each company on a daily basis to ensure that the balanced sales plan is implemented and the loan is collected on time .
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