To Help Wuhan Optics Valley Tide Over Difficulties, Zhengshang'S Various Business Models Help Cotton Industry Chain And Trade Enterprises To Resume Work.

During the new crown epidemic this year, all kinds of enterprises are facing unprecedented challenges. Many entities have to deal with the problem of price risk and tight capital, but many companies have used the futures market smoothly to tide over the difficulties. It is understood that Since 2020, the turnover of warehouse receipts has been more than ten billion in the comprehensive business platform of Zhengshang, most of which are mainly based on the "buyout buy back" mode that the service industry enterprises conduct warehouse receipts transactions and solve the capital problems. During the epidemic period, this business mode has solved the urgent problem of 44 enterprises.
The epidemic has caused a great impact on the real economy, especially in Hubei. Wuhan Optics Valley agricultural products trading market Limited by Share Ltd (hereinafter referred to as Optics Valley agricultural products) is a trading company located in Wuhan, with cotton futures standard warehouse receipt as the main business. Although the business was hit by the epidemic, the company successfully used the futures and options packages of Zhengshang to successfully overcome the hard times, and the relevant business activities have begun to return to normal.
At the beginning of this year, the epidemic led to a pessimistic mood of market demand for cotton. The main contract price of cotton dropped from 10000 yuan to 14000 yuan per ton a year ago, which led to the shrinkage of Optics Valley's large quantities of cotton spot stock. However, the company official told reporters that due to the establishment of a strict wind control measures, the company's hedging position successfully evaded the price risk. "There must be one-to-one correspondence between futures positions in the company's spot stock. Before that year, the company built a hedging position by shorting cotton futures and buying cotton put options. In the process of falling cotton prices, the absolute value of the put option Delta keeps increasing. The profit of the company's hedging position not only covers part of the spot loss, but also has a slight surplus on the whole.
In addition, Optics Valley's agricultural products also use the futures market to solve the financial problems. During the epidemic period, cotton cotton yarn production, sales, logistics and money withdrawal tend to stagnate. Capital occupation, inventory turnover and base premium are difficult. These bring enormous pressure to the capital turnover of enterprises. According to the relevant person in charge of agricultural products in Optics Valley, the company sold 106 warehouse receipts to the Shanghai Pudong Development Bank through the warehouse receipts transaction of Zhengcheng comprehensive business platform, and nearly 50 million yuan was revitalize.
During the epidemic period, the staff of the company could not work normally, and many business processes could not be carried out normally. However, the integrated business platform services of Zhengzhou merchants were completed online, and the warehouse transaction process was simple with the bank, and no need to apply for the credit limit. Due to the fast return, flexible use of funds and low cost, the company's financial pressure has been greatly alleviated. The head of the company said.