Zheng Shang: Cotton Yarn Futures Will Be Listed In The Year.

This year, China launched a pilot reform of cotton target price in Xinjiang, abolished the cotton purchase and storage policy which has been implemented for three years, and accelerated the marketization of cotton prices.

Zhang Fan, director general of Zhengshang merchants, said that the core and essential effect released by the cotton target price reform experiment is that the market mechanism will play a decisive role in the price formation.

The futures market is an important part of the market system. The pilot reform of target price has made many positive changes in the cotton futures market.

From 1 to September this year, the number of enterprises involved in cotton business increased by more than 40% compared with the same period last year, and the risk aversion demand of enterprises increased significantly. The number of corporate clients involved in cotton futures trading increased by 78% over the same period last year, much higher than the 27% increase in the number of natural clients involved in the paction.

The legal person accounts for nearly 100 thousand hands per day, an increase of 84% over the same period, and the trend of cotton futures and spot prices converge. The price difference between China and the United States has obviously narrowed, from the highest to more than 6000 yuan per ton, narrowing to about 2000 yuan at present, and the discovery function of cotton futures price has gradually been restored.

The participants believed that the implementation of cotton

The pilot reform can not only effectively protect the interests of the broad masses of cotton producers, but also help reduce the cost of cotton textile enterprises, and help to restore the competitiveness of China's cotton textile industry in the international market.

In cotton

In the process of reform, the market environment of cotton processing and circulation enterprises has undergone major changes. The role of cotton futures market is becoming more and more important. We should actively explore innovative ways of cotton futures market, and give full play to the role of futures market in the formation of cotton market price, so as to maintain market stability and promote healthy development of China's cotton industry.

Zhang Fan said,

Next, we will pay close attention to the revision of the Zhengzhou commodity exchange futures delivery rules, the Zhengzhou commodity exchange standard warehouse receipt management method, and complete the work of establishing a cotton pfer intermediate repository in Xinjiang as soon as possible.

At the same time, on the basis of active preparation and simulation operation, we should further improve the implementation plan and strive to launch agricultural product options as early as possible.

We will strive to promote R & D of cotton yarn, strive for listing pactions within the year, and improve the cotton industry chain product system to meet the needs of cotton related enterprises.

We will continue to strengthen the training of futures knowledge in cotton enterprises, strengthen publicity and promotion of typical cases, and guide more enterprises to avoid risks in the cotton futures market and achieve stable operation.

We should conscientiously strengthen the supervision of the cotton futures market, intensify the investigation and handling of illegal and abnormal pactions, and ensure the normal functioning of the cotton futures market.