Zhengzhou Commodity Exchange: Starting from cotton futures, we will continue to increase our efforts to aid Xinjiang
New cotton in 2021 will be put on the market soon. In order to promote the improvement of quality and efficiency of the cotton industry and guide the cotton industry to rationally manage the risk of cotton price fluctuations in the new year, on September 29, Zhengzhou Commodity Exchange jointly held the “Response Opening” in conjunction with the Development and Reform Commission of the Xinjiang Uygur Autonomous Region, the Local Financial Supervision Administration and the Xinjiang Securities Regulatory Bureau. New Bureau – Xinjiang Cotton Industry HighQuality Development Forum”. The meeting was conducted via online live broadcast, and relevant responsible persons from ginning companies, traders, warehousing companies, downstream textile companies, and cotton planting cooperatives attended the meeting.
. According to a reporter from Futures Daily, in recent years, Zhengzhou Commodity Exchange and futures operating institutions have carried out a lot of work in cultivating Xinjiang futures market, educating investors, and assisting corporate risk management.
In September this year, Zhengzhou Commodity Exchange and the People’s Government of the Xinjiang Uygur Autonomous Region renewed the strategic cooperation memorandum, which further consolidated the foundation for the futures market to serve the high-quality development of Xinjiang’s real economy. Both parties will strengthen Xinjiang’s characteristic industries and develop and list Xinjiang’s characteristic futures products. comprehensively deepen cooperation in aspects such as promoting rural revitalization and continuing to inject new momentum into the development of Xinjiang’s real economy.
2021 is the first year of Xinjiang’s “14th Five-Year Plan” economic and social development plan and Xinjiang’s high-quality cotton base construction plan. Whether it can comprehensively improve the quality of Xinjiang cotton and maintain a stable and orderly cotton market will determine the next round of the country’s The cottontarget price reform and the high-quality development of Xinjiang’s cotton industry have had a greater impact.
According to the reporter’s understanding, Xinjiang’s cotton is currently growing well and a bumper harvest is expected. Liu Weidong, director of the Economic and Trade Department of the Development and Reform Commission of the Xinjiang Uygur Autonomous Region, said that domestic cotton futures and spot prices have continued to rise in recent months and are still running at high levels. However, in the long term, with the large number of new cotton on the market and downstream yarn and cloth inventories, With the increase, the spot price of cotton will gradually fall, and the purchase price of new cotton is also expected to open higher and move lower. “In the new cotton year, maintaining the order of the cotton market and keeping the market and prices running smoothly will be the top priority of cotton work.”
Liu Weidong said that in the next stage, relevant departments in Xinjiang will carefully analyze and judge the impact of domestic and foreign cotton market changes on Xinjiang’s cotton industry, with the goal of improving cotton quality and promoting the high-quality development of the cotton industry, and effectively implement relevant policies and measures. We will continue to strengthen supervision, standardize market order, and resolutely crack down on adulteration and price-gouging in the cotton market. Promptly alert processing companies of risks, warn them to make rational acquisitions, and take measures to stabilize market expectations. “The autonomous region will continue to actively explore new subsidy methods, optimize the cotton ‘insurance + futures’ model, and choose to launch the cotton ‘insurance + futures’ pilot in Changji City to improve the pilot plan, from premium determination, price determination, output determination, compensation assessment, risk assessment Optimize prevention and other aspects, and explore policy paths for financial instruments to resolve cotton market risks.”
The reporter learned at the forum that cotton futures have functioned efficiently since their listing, empowering the smooth operation and healthy development of the cotton industry, especially the Xinjiang cotton industry, which is mainly reflected in three aspects: First, accurate price discovery. Since 2017, the correlation between cotton futures and spot prices has been as high as 97%. The futures price system comprehensively integrates multi-dimensional information such as policy, macro, industry, and capital, quickly and effectively feedbacks market changes, and provides accurate information for participants in the cotton industry chain to judge the market situation. “barometer”. Second, hedging is stable. By hedging in the futures market, the operating risks of cotton-related enterprises can be effectively reduced. Driven by this, the number of registered warehouse receipts of Xinjiang cotton has increased from 862,000 tons in 2018 to 1.515 million tons in 2020. More and more Xinjiang cotton is maintaining its value and selling it through the futures market. Third, the comprehensive benefits are excellent. In 2017, in order to adapt to the adjustment of the cotton industry, Zhengzhou Commodity Exchange moved the benchmark delivery location of cotton futures from the mainland to Xinjiang, helping Xinjiang become the cotton pricing center of China and the world.
It is understood that starting from cotton futures, Zhengzhou Commodity Exchange has continued to increase its investment in futures development in Xinjiang and enhance the effectiveness of the futures market in serving Xinjiang’s economic development. It has signed strategic agreements with the People’s Government of the Xinjiang Uygur Autonomous Region and the Xinjiang Production and Construction Corps. The cooperation agreement will provide a top-level design for the futures market to serve Xinjiang’s economic development. The launch of cotton yarn, red date futures and cotton options and other Xinjiang-specific derivatives has enriched the risk management skill set of Xinjiang entities. Since 2016, we have supported the development of 35 “insurance + futures” pilot projects in Xinjiang, including cotton; we have cooperated with the Agricultural Development Bank to carry out the “value-preserving loan” business of futures warehouse receipts and explore the use of bank loans for cotton to enter the futures market for hedging and delivery. , opening up the bank-futures connection path; carrying out warehouse receipt trading business on the Zhengzhou Commercial Exchange’s over-the-counter comprehensive business platform, introducing commercial banks to provide financing loans to cotton operating companies, and has provided 72 cotton-related companies since 2019.�Provided acquisition funds of 14.434 billion yuan, broadening the financing channels for cotton-related enterprises; selected 9 cotton-related enterprises, including Guannong Group and Lihua Cotton Industry, as industrial bases to set industry benchmarks and spread the positive energy of futures; in Urumqi A service and development center was set up, and five staff members were selected to serve in Xinjiang to achieve seamless connection with the Xinjiang market; five Xinjiang ethnic minority students were recruited to work in the exchange, one of whom had returned to Xinjiang to work, truly making Xinjiang children Go out and become a talent brought in.
Xing Xiangfei, deputy general manager of Zhengzhou Commercial Exchange, said that in the future, Zhengzhou Commercial Exchange will be more active and proactive, taking building, developing and maintaining the cotton futures market as the starting point and goal, and unswervingly promote Xinjiang’s characteristic economy, especially cotton. High-quality industrial development. The first is to continue to optimize cotton and cotton yarn futures rules so that high-quality systems can provide impetus for the high-quality development of the cotton industry. The second is to explore the internationalization path of cotton futures, and rely on Xinjiang’s geographical advantages of “five ports connecting eight countries and one road to Europe and Asia” to explore making Xinjiang a highland for the opening up of cotton futures. The third is to closely follow the market needs and optimize and adjust the layout of delivery warehouses so that cotton futures can benefit more cotton-related enterprises in Xinjiang in a wider area and scope. The fourth is to maintain investment in the cotton “insurance + futures” pilot and launch two more projects in Maigaiti and Tumshuk in 2021. The fifth is to increase the construction of comprehensive over-the-counter business platforms, starting from the China Cotton Warehouse Receipt Purchase and Sales Zone, enriching the functions of the off-site platform, prospering the development of the over-the-counter market, broadening sales channels, reducing financing costs, and enriching risk control methods for cotton-related enterprises. Contribute more futures power. The sixth is to strengthen the depth of market services, and cooperate with Xinjiang government agencies to organize activities such as “State-owned Assets and State-owned Enterprise Training”, “Rural Revitalization Forum” and “Futures Knowledge on Campus” to allow all parties in Xinjiang to obtain more financial and futures knowledge; highlight the advantages of the platform and organize various Conduct industry research, lead capital into Xinjiang, and promote investment; give full play to the leading role of industrial bases and drive Xinjiang enterprises to make good use of live futures tools. Seventh, strengthen organizational guarantees, strengthen the construction of Urumqi Service and Development Center, and enhance the center’s functional role and service capabilities.
AAA
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights and interests, please contact us and we will change or delete it as soon as possible.
AA
