Service Cotton Industry Needs Continuous Innovation

Here world Clothing shoes and hats Xiaobian of the network to introduce to you is to serve the cotton industry needs to continue to innovate.

stay cotton Futures market plays an important role in the process of industrial development.

Ma Wensheng, chairman of new lake futures, said on 18 2014 in Zhengzhou agricultural products (000061, stock bar) (cotton) futures forum that it is precisely because of China's futures market that domestic cotton enterprises will have strong market awareness and speed up their integration with the international market. In the case of hedging protection in futures market, enterprises can expand their scale boldly, continue to explore industrialization and expand their own distinctive business models.

According to the futures Daily reporter, Futures Company's risk management subsidiary is also playing a more and more important role as a bridge for Futures Company to serve the three rural areas. Since the beginning of this year, the SFC has given great support to Futures Company's innovation. Futures Company has begun to make some new attempts in serving the enterprises to play a role in the futures market.

How to play the role of the futures market in the reform of the national grain price system? Zhang Lei, general manager of CITIC futures, said at the forum that to adapt to the changes in national policies, the innovation of the futures industry needs to be further enriched in financial instruments.

Zhang Lei thinks that the cotton target price subsidy policy is equivalent to a pulsing put option if it is thought out of the OTC option. "The market sells the put option of the subsidized price to all the large cotton farmers, but whether this option can be obtained is related to the implementation of the government."

He suggested that Futures Company risk management subsidiaries and futures practitioners themselves also need to upgrade, from simple to provide hedging tools to enterprises, to provide more abundant risk management tools to industrial organizations, and provide enterprises with various diversified risk management products in the future.

Wanda futures general manager Cong Longyun said, Wanda futures since 2004 cotton futures listed in Xinjiang opened business department, from the most basic cotton how to purchase, processing, transportation, packaging until the entire sales warehouse form, providing a full range of services. It also set up a cotton industry division in Henan headquarters, forming a whole industry chain service system from sowing, processing, trade, textile to clothing.

Everbright futures General manager Tian Yalin put forward the division of market varieties and regular varieties. He explained that for market dominated varieties such as copper, investors will focus on supply and demand. Cotton is a rule dominated variety, and we must study the rules of futures trading, especially the delivery rules. The trading group is always around the relevant industry groups and proficient in such specific investment groups. The size of the delivery volume is sometimes the dominant factor in inducing the market. Its participation in trading is relatively limited, and should be more marketable. And Zheng Shang is ready to set up a cotton transfer terminal in Xinjiang on the new contract for the first time to solve the delivery problem, which is a system innovation from the rule to market type transformation. In his view, the main body participating in cotton futures will increase substantially.