Wenzhou Private Capital Cotton Speculation Fact Finding: Billions Of Hot Money Fried Cotton Is Speculation

Although 6 years ago there was a lesson from Wenzhou's "fried cotton group" in Xinjiang, this year, billions of Zhejiang's private funds fought for Xinjiang's acquisition of cotton. The argument was noisy.

Then, it's a hot money.

Billions of hot money fried cotton is out of nothing.

"With Xinjiang's cotton prices rising all the way, at least 10 billion yuan of Zhejiang's private funds (mainly Wenzhou's private capital) withdraw from Shanxi's coal mines and domestic real estate market and go to Xinjiang's cotton market.

Some of the hot money has come to blossom. Some of the hot money is playing in the spot and futures markets, and some idle funds are waiting for admission.

In recent domestic reports, the argument that Wenzhou's "hot money" has flocked to Xinjiang is not only the name of investors, but also the total amount of funds, and the most striking figures come from Xinjiang Zhejiang Business Association (chamber of Commerce).

Wang Yanhong, director of the office of the Xinjiang Zhejiang Federation of enterprises (chambers of Commerce), said the legends and reports on the matter were purely hype and were not consistent with the facts.

Wang Yanhong said: "the chamber of Commerce has never provided such data to any media, nor can it make such statistical data."

And some Wenzhou cotton traders who have already entered Xinjiang have no idea about this.

Li Changliang, a cotton merchant in Wenzhou, who has been engaged in cotton processing and purchasing industry in Xinjiang for many years, is surprised at her recent frequent appearance in the press, because nearly every article about Wenzhou's hot money in Xinjiang has recently mentioned him and his business.

Li Changliang said, "I have never received media interviews on such topics. I really don't understand how my name got on the newspaper."

Chen Shiwen, executive vice president of the Wenzhou chamber of Commerce in Akesu, Xinjiang, said that as early as 2002, the private capital of Wenzhou had been heavily involved in the acquisition of Xinjiang cotton market. Recently, the so-called billions of hot money to Xinjiang "fried cotton" was completely out of nothing. Otherwise, the Wenzhou cotton merchants who invested in factories in the main cotton producing areas could not have been unaware of it.

"Platinum" can not pull too much "hot money".

Some Wenzhou cotton merchants said that 6 years ago, Wenzhou "

However, only a year later, the market gave a lesson to impulsive "hot money".

Due to the excessive concentration of time and quantity of imported cotton, the cotton prices in China fell sharply in 2004, and the main cotton enterprises were generally losing money. The cotton merchants who invested in Xinjiang also suffered heavy losses.

Most of the funds have been stranded, and many people have not yet recovered all their investment so far, so they have to continue to "trouble" for cotton.

Wen quotient Chen Shiwen said: "originally intended to make a profit, but eventually turned into an industry."

After several times of market difficulties, the pursuit of high profit "fried cotton regiment" has finally become an investor in the industry.

On the question of "going and staying" after "speculation", cotton traders in Wenzhou appear very rational.

Chen Shiwen said: "before we have a better choice, we can only engage in a relatively familiar business. Although we are running a small profit margin, it is a relatively stable industry after all, and we have already paid an expensive tuition fee."

According to the analysis of some cotton merchants in Xinjiang who invest in Wenzhou, at present, Xinjiang cotton simply does not have the condition of being hyped, because the profit of the industry is very low now, and the domestic cotton price has basically been in line with the international standards. If there is no international hot money cooperation, it is difficult to fry the domestic cotton price; while the hot money is pursuing high returns in the short term, even if the domestic cotton price is high, if the domestic price is high.