How Can Enterprises Use PTA Futures To Develop International Trade Under The "One Belt And One Way" Strategy?

China Futures Association and

The Eleventh China (Shenzhen) International Futures conference, jointly organized by the Municipal People's government, was held in Shenzhen from December 3rd to December 5th.

The current China (Shenzhen) International Futures conference is more diverse and diversified than ever. With the theme of "cross-border, cross-border and leapfrog", Melamed, the world's leading financial derivatives experts, scholars, leaders of the Shenzhen municipal government and the securities and Futures Commission, and major exchanges at home and abroad, have been invited.

Enterprise,

Companies and other elite leaders attended the meeting.

The conference will focus on "how to better serve the risk management of the real economy, and promote in-depth research on major issues such as futures and spot, domestic and overseas, intra and off-site, online and offline interconnection, and financial integration and cross-border integration".

Hong Yuan, assistant general manager of Xiamen Xiangyu Group, made a keynote speech. "How to make use of PTA futures to develop international trade" under the strategy of "one belt and one road"?

The following is a written record:

Compere: under the strategy of "one belt and one road", enterprises actively seek the path of international development. The international trading platform being developed by the futures market can boost the internationalization process of enterprises and enhance the international competitiveness of enterprises.

The following is the keynote speech of Hongyuan, assistant general manager of Xiamen Xiangyu Group, "how to make use of PTA futures to develop international trade" under the "one belt and one road" strategy.

Hong Jiangyuan: Good afternoon, dear friends. I am very happy to be here in Shenzhen today, because I originally hosted the first international futures conference in Shenzhen ten years ago. At that time, I was planning to set up this conference. I used this hall. It should be a fate. I am here today to discuss the "one belt and one road" with everyone.

My company Xiamen Xiangyu shares (600057, stock bar) is located in a bonded area in China. In the Fujian free trade area, we have tens of billions of trade every year, many of which are chemical industry. Today, as a speech, we hope to make a communication with our views.

First, the understanding of "one belt and one road" stands high and looks far away.

Second, the development of PTA futures in the chemical fiber industry, I have also done futures management, have done the actual trade on derivatives hedging, this piece of how to make use of the enterprise, and finally some suggestions.

When the "one belt and one way" was introduced, the specific difficult period in 2014 and 2015 was introduced, so the long term recession of the global economy and the future economic downturn were normal. We judged the 15 long cycle recession.

Over the past 30 years, our high-speed economic growth and demand has been completed through debt expansion. All countries have sufficient funds. All countries in Greece can expand through debt. With the 08 year economic crisis and global adjustment, even if we have economic growth in the future, we will also be able to repay debts. We can not afford to spend, and the economy will not consume enough in the long run.

All governments and enterprises are in debt recession. The current Chinese government is different from the past. This contraction supply side has reached a new balance. "One belt and one road" is a self repair. This cycle is very long. We have to create a new supply.

A new balance of supply and demand will continue to fall for our commodity futures, and for trade enterprises, China's capacity must go out.

It is difficult for us to know that the global market is harder for others. In this process, Chinese enterprises must take the initiative, so the "one belt and one road" has been promulgated at this time.

There is no way out for China to lower its exchange rate and increase its exports. There is a serious surplus in domestic supply and the loss of enterprises. Our commodities should be the representatives of anti-dumping. In the short term, we can export more trade frictions in the medium term, so we need to keep the upgrades of the supply countries in the middle and stay at home.

Industrial upgrading and the rigid cost of RMB, because we can not stimulate the export of a large depreciation of the RMB. The strategic consideration is that the RMB should be maintained stable in order to form an international currency. This is the process of establishing credit.

Marshall changed the demand of the industrial cluster and stimulated the demand of ten years and twenty years later, and balanced the current supply. At present, the global low interest rate, the developed country's funds are seriously overloaded, and the political environment is very difficult under the difficult economic circumstances. Therefore, no enterprise can pfer the funds from developed countries to developing countries, and must be organized by international organizations. The existing international organizations and international banks are not able to do so. Therefore, China has begun to form a "one belt and one way" train of thought. The Asian investment bank and private equity fund have been produced. China has taken the government's behavior to pform the funds from low end to high developed countries to developing countries and create demand. In this process, the internationalization of RMB is the most important part of Guangzhou.

It is a very effective way to create future needs, to take short-term risks and to solve temporary difficulties. Of course, it is a risk of the times.

"One belt and one road" boosts Chinese enterprises' going out, and China is innovation, including cross-border development. Our international market is "one belt and one road", and RMB internationalization.

It is of limited significance to talk about the PPP with the United States, but for the Communist Party of China, the most difficult one for the Chinese Communist Party to lay this mountain and the countryside to encircle the city is the country on the "one belt and one road". When China's chariots come together, all the people join together, the low-end industry will be pferred to China and the industry will form the whole industrial chain. At that time, RMB internationalization will come into being naturally.

Ten years later, we have the opportunity to rethink the issue of RMB in the world.

"One belt and one road" is a national strategy. It is a deliberate and systematic nature of the global recession.

Our commodity will fall, the beginning of the long cycle, this cycle should have 15 years, and the long economic demand in the past 30 years, China has been delayed three years, only started in 2011. China's decline in commodity market adjustment is extremely fast and very difficult, but I think this kind of difficulty is just beginning.

For our commodity PTA market, the first price center, the second price profit, now has profits, the industry has more than 700 yuan processing profit, Far East petrochemical and Xiang Lu made a huge contribution to the 350 yuan, there is not much capacity surplus, the industry started as long as 60, the industry seriously loss, started 80%, good good, poor, not much, we are now operating rate is quite high, some of them are idle for a long time.

At this time, what are we going to do under the "one belt and one road" of China's chemical fiber industry? We need to expand the price over the past 30 years, and we will take RMB pricing, so we must assume the fluctuation of the exchange rate, take on the fluctuation of domestic interest rate, assume the fluctuation of commodity processing profit and fluctuate the value of the commodity itself. If the RMB is set as the benchmark of price, if we set the benchmark for RMB, the two fluctuations of our profit and exchange rate will be eliminated.

We have greater capacity and better conditions to optimize our production cost structure globally, and we must move some industries out.

Like Japan, it began to depreciate in 1972, accelerated in 85 years, and 360 to 90. Many industries in Japan were completely destroyed by the whole industry. There was no way to reduce costs and exchange rate changes in the industry.

China's RMB will continue to strengthen in the long run. Therefore, we believe that vertically integrated enterprises are the development of Chinese enterprises. They can not get out of the country and will eventually be integrated by others. The government creates the environment, and the exchange creates platforms.

Futures are the inevitable product of the advanced market. This variety is more consistent with China's industrial foundation, which is chemical industry. The largest consumption is below, and the global market is the center of pricing. It is complementary to our cotton. It is a natural fiber and artificial fiber, including PET and so on.

In the next ten years, the global demand is not good, and the fluctuation of RMB continues to appreciate. If we can set the price of RMB as the benchmark, China's going out, Chinese enterprises will reduce the fluctuation of exchange rate and interest rate, only consider the commodity and processing profit, and reduce the cost of the whole industrial chain. The integration of the global market should be concentrated, and we must take the initiative to go out.

This is Japan, 360 to 90, and a large number of industries have been wiped out in exchange rate changes. The Chinese government has strictly controlled this progress. Although the dollar is very strong, many currencies have fallen to 4 yuan against China, which is not comparable to many of our industries, such as the cost structure of iron ore.

It is meaningless for us not to take the initiative to go out. Therefore, we can not just shut down the domestic production and go out, and the whole control of the industrial chain is the key.

Take the initiative to recognize reality, global recession, long cycle, recognize our capabilities, the largest single market in the world, the stability of the Chinese market, and many other industries, so it is hard for us to believe that only 6% of us believe it is more difficult for others.

In the process of competition, we should have the bottom line.

Labor intensive must go out and reduce the cost of the whole industrial chain through other countries.

Second, expand demand, 30 years ago, many countries entered China, and did not know that China had a high speed development. After 30 years, the demand was rising. When the earliest entry into the market, enterprises could set up corresponding standards. At this time, if China can "connect all roads" to the corresponding countries, we will set up a rule in the future, that is, the GB, the GB of China will go out, become the corresponding national standard, and be linked to the RMB to form the whole pool of RMB, which will greatly reduce the pressure on Chinese enterprises to compete in foreign countries.

For China, to go out this time, we must have the support of the state, the push of the society, the efforts of the enterprise, and the enterprising spirit of the individual.

China provides "one belt and one road". What does the Chinese government solve? The "one belt and one way" is only a solution to basic pportation and electricity. All enterprises can not support themselves.

In terms of industrial clusters, the whole industry should move outward to form an industrial chain, and the textile and clothing go out of their own way instead of the Chinese government's initiative. If we go to Sri Lanka, the government will promote the basic conditions and do well with China's support. RMB settlement is the key. He must take the renminbi out, like us 20 years ago, using the RMB to do the bonded business.

The international pricing center is just the right time for Zhengzhou. This environment is difficult for other countries. We need to do a solid job.

Enterprises should make use of the strategic guideline of "one belt and one road" in a large environment. This place has been implemented for ten years, but we need to take it one step at a time. The core of going out is the enterprise. The government is just setting up the platform. It is very difficult for the exchange to go out. Shanghai has already set up an oil trading center in the free trade area. After this FTA, there are corresponding conditions for foreign investors to open accounts and RMB settlement, and all aspects of foreign exchange purchase. The two step is to go out and import.

Under the traction of the "one belt and one road", we must understand and stand at a higher angle when we do things for our country.

We should actively participate in the implementation of such institutions as social exchanges.

Third, enterprises should actively adapt to social development and do not want the market to return to their past glory. That is a specific era and will never come back again.

In the big environment, we have the conditions at present, China's economy is relatively good, the second industry is almost the same, the new industry is better, the service industry is better, but after all, it has not been very difficult for us.

Our finances are still very well off, so compared with other countries, we still have 70% energy for development. Other countries are hard to develop. The political turmoil has begun.

Second, the settlement of RMB is very easy. It is very easy to go out at this time. The central bank and the international market, the corresponding RMB sides of the various countries make the settlement mechanism, determine the RMB settlement banks in various regions, and accelerate the way out for Chinese banks. The core of the biggest core is that after the eurodollar center, the European center of the renminbi falls in the financial city of London. This is the most important development for the UK.

We feel that the international settlement and pricing of the RMB is decided by the rational capacity of China and the capability of China's huge production capacity. We normally say that as long as it is a production center, it can become the center of circulation of goods, with the focus of circulation center being likely to develop into a shipping center, and the international shipping center must be an international financial center.

From the world's largest production center to the most central shipping center in the world, China is now becoming a financial center and going global.

Industrial clusters have excellent enterprises to go out, not enough excellent enterprises and excellent enterprises to tie together, do their industry matching, through his whole go out, so that risk control and cost optimization, many industries, iron and steel can not afford to lose, can die in the domestic market, and build another set in the future international market. Under this exchange rate system, China's development and international conflict must be rebuilt abroad, and China's export technology, standards, capacity and output control.

The use of derivatives, including natural fibers, will become the pricing center of global related products in China. This pricing is a full range of significance.

But also need more options, when to push, this is a process.

Second, the peace treaty is very inconvenient for enterprise hedging, and I believe the exchange wisdom. I think if there is at least one good agreement, it will be suitable for speculation.

Third, the delivery of goods, delivery, including all aspects of the international standard can start from the beginning, we now do not have bonded delivery in Zhengzhou, this is a pilot, with no important link, but good and bad is another matter.

With regard to the development of the whole PTA industry as a trading enterprise, I feel that the first step to go out is to face the lag of economic development, the change of the social development and the gravity of the whole economic development in the whole of China.

Instead of taking a knife to cut it, it is when the country pushes forward, the "one belt and one road" forms the infrastructure, including our power system, including our pportation system and national strategy. With these sub investment banks and other enterprises, our enterprises should go out of the way to turn the industry out, the exchange rate of the people's currency is stronger, and the competitors can not compete with you. You can't go out to do the matching, and the government does the huge risk. Once it is ready, no one will refuse it.

This is the time when every economic crisis is intended for China. In the 97 years of the Asian financial crisis, the great opportunity for China to accelerate its development in the past 89 years. The 08 year crisis is also the same. China's social mechanism is related. This 08 year crisis is what I think is the key to the rise of the nation and depends on ourselves.

This is the exchange rate changes of the Thai baht. These exchange rates are all depreciated and the renminbi remains relatively stable. This is the foundation of the international currency.

First of all, our assumption is that RMB will be settled in the whole country. Now we have an offer for us dollar settlement two currencies, which can be settled in US dollars, and the whole RMB settlement is the most important. Let other countries take RMB as a bond to form the whole industry chain to make RMB pricing and participate in international competition. Every enterprise will have a strong RMB if they do well. If every enterprise uses US dollars, there can be no strong RMB and China.

Second, the standardization of chemical fiber trade, if the exchange of six main forces and contracts, can form a trade price model, and how the exchange promotes regional premium and futures price, we must change the trade mode, learn from others, identify the industry, and finally pricing around the paction, to the exchange, we can make the market bigger.

Point price and feedback terms, other industries have to see how to use, in fact, to your advantage, to others is unfavorable, can not continue, should be a long-term supply, everyone said that the economy is shared.

International competition of core enterprises, we say exchange rate risk, market risk, industry risk, interest rate risk.

This is the two standard demonstration in Pakistan and Indonesia. The earliest PV starts to start. Next year, it will start generating electricity. Other things will soon start, and the eight big ports have already been built. I believe that the long-term plan of the Chinese government will come into being. The Chinese government will definitely not be able to go out and go out of power, and so on. This time will be much more serious than we thought, including the right of way in the future.

The internationalization of trading companies first recognise the idea that sitting at home is not good at the upstream and downstream. What makes you make money, control the risk through derivatives, control the risk of social pactions, minimize the cost of social operation, and all the companies that increase the price will not survive in the weak cycle.

We should actively enhance our professional standards and actively participate in international matching. In the future, some people will form an integration of upstream and downstream industrial chains, with the premise of RMB as the benchmark.

The top trading enterprises represent China's participation in international competition, and RMB pricing is of great value to China's PTA enterprises. We must realize that this is China's going out and every enterprise going out to have a strong Chinese economy before we have RMB.

Thank you.