"Zhengzhou Price" Shows Market Influence

Since the establishment of Zhengzhou grain wholesale market in 1990, Zhengzhou Commodity Exchange (hereinafter referred to as "zhengshangsuo") has gone through 30 years. From the initial spot trading to forward trading, and then to the introduction of futures trading in 1993; from the five agricultural products opened to the current varieties involving grain, cotton, oil, sugar, fruit and energy, chemical industry, textile, metallurgy, building materials and other fields of the national economy; 927 transactions were completed on the opening day, and the daily average was more than 6 million hands in June this year; from the "spring bird" of China's market economy to now To become an important global derivatives market.

This year coincides with the founding year of zhengshangsuo. In an interview with the Securities Daily, the relevant people of zhengshangsuo said that in the past 30 years, it has not forgotten its original mission, helped the market-oriented reform, gave full play to the role of the market function, and served the national strategy and the real economy. It has achieved remarkable results in many aspects, such as helping enterprises to return to work and production effectively during the epidemic period To undertake a number of important tasks for China's economic market-oriented reform and the implementation of the national development strategy.

Help enterprises to effectively fight "epidemic"

Since this year, due to the impact of the epidemic, the production and operation of all walks of life have been severely tested. In the process of helping enterprises tide over the difficulties, Zheng Shang uses the unique function of futures to escort the real economy.

"Hedging and risk aversion is one of the basic functions of the futures market. The more volatile the spot market is, the more fully the function will be." According to the relevant person of Zhengshang exchange, taking this year as an example, affected by various factors such as the epidemic situation, the industrial chain is not running smoothly, the bulk commodity market is fluctuating violently, and the spot circulation of physical enterprises is not smooth, and the operational risk is increasing sharply. In this context, the exchange maintains the normal opening and stable operation of the market, which has played a unique role in the stable operation of the relevant commodity industry chain and supply chain, and contributed to the "futures power". At the same time, the entity enterprises actively participate in the futures market management risk, and the overall market transactions, the number of new accounts opened, and the proportion of legal person customers' trading positions have been greatly improved.

In addition to providing risk management tools for enterprises, Zhengshang Institute has also provided help in easing the production and circulation of enterprises. According to the relevant person of the Zhengshang exchange, the physical delivery of commodity futures is the guarantee to ensure the convergence of futures and cash prices, and the smooth delivery process also provides additional purchase and sales channels for real enterprises. In the case of poor circulation in the spot market due to various reasons, the role of supplementary purchase and sales channels in the futures market is more prominent. Take steam coal as an example. Thermal coal is the futures variety with the largest physical delivery volume in China. All previous major contracts have been delivered. As of the first half of this year, there have been 27 deliveries involving 105 enterprises, with a total delivery volume of 13.815 million tons.

It is understood that during the epidemic period, zheneng Fuxing fuel company, a subsidiary of zheneng group, used the futures of steam coal to buy hedging and establish virtual inventory. While locking the cost of coal, it dynamically cooperated with the change of spot stock, and timely replenished the inventory to relieve the pressure of supply guarantee. The relevant person in charge of the group once said that Zhengshang exchange has become the group's fifth largest supplier in addition to the "four power coal". The hidden meaning is not only that the electric power enterprises have enriched their business means through futures delivery and inventory management, but also the improvement of the related industries' awareness of derivatives tools - a more three-dimensional production and operation mode, which enables the development of enterprises The industry chain is more stable and more risk tolerant.

Due to the diversity of enterprise production demand, futures market also provides enterprises with solutions combined with their own actual difficulties, such as relieving the pressure of enterprise capital. For small and medium-sized enterprises, the financing problem has always been an obstacle that can not be bypassed - the bank loan qualification requirements are high, and through the spot warehouse receipt mortgage, there are problems such as the change of goods right and the change of goods value.

For example, some enterprises carry out mortgage financing through standard warehouse receipts in the futures market, and can activate their funds in the form of margin, repurchase financing and pledge financing. This is not only because the futures warehouse receipt has the endorsement of the credibility of the exchange, but more importantly, the futures trading mechanism and warehouse receipt attribute lock the value of the warehouse receipt. The safety of the loan funds of banks and other institutions can be effectively guaranteed, and enterprises can also solve the urgent need of capital turnover. At the same time, with the continuous promotion of OTC warehouse receipt trading business and the entry of bank funds, enterprises more and more ease the pressure through warehouse receipt pledge.

The reporter understands that the pressure of cotton futures companies is alleviated. Since the end of 2019, the number of registered cotton warehouse receipts has reached about 1 million tons, ranking first in the market. During the epidemic period this year, Shanghai textile investment and Trading Co., Ltd. used the standard warehouse receipt trading in the futures market to connect with relevant banks to carry out buyout repo business. It obtained financing funds at a lower interest rate of 3.915%, and obtained working capital of more than 700 million yuan, which effectively guaranteed the liquidity demand of enterprises during the epidemic period.

In the fight against the epidemic, the futures market and the "futures power" contributed by Zheng Shang also played an important role in stabilizing the operation of enterprises.

Market oriented reform

A senior personage in the industry told reporters about the development process of Zhengshang Institute. In 1990, China's Zhengzhou grain wholesale market was established, and the development of new China's futures market took a substantial first step. Starting from spot and introducing futures mechanism, it clearly conveyed the signal that the direction of China's market-oriented reform would not change. In 1993, after the reform was accelerated, the Zhengzhou Commodity Exchange was listed on the basis of the grain wholesale market in Zhengzhou, China, and the futures trading was officially launched.

"In 1995, it was also the fifth year of the establishment of the Zheng Shang Institute. On the basis of research and practice, it explored the first new China's futures trading rules, which are in line with the general principles of international futures and China's national conditions, and have provided an institutional template for the overall standardized development of China's futures market." The senior person in the industry said that at present, all trading rules and main regulations of domestic futures market come from this.

However, there are many problems in the process of China's socialist market development, such as the establishment of the market system, the lack of effective mechanism to promote the development of China's spot market The degree of marketization, standardization and standardization of spot market has been improved.

Since the date futures market has been officially monitored by the national jujube futures market for many years, the national jujube futures market price monitoring system was officially launched on the national jujube futures market for 27 years.

The futures market, by keeping close to the spot market, connects the futures standard with the spot habit, and brings convenience to the spot industry with "standardized" service. "Listing a variety, serving an industry" is the goal of Zhengshang stock exchange to expand its service breadth and depth.

At present, Zhenghe needs to expand the depth of service to meet the needs of the market. Among them, there are 6 important varieties in the world, such as silicon, iron, silicon, iron, silicon, iron, silicon, iron, iron, silicon, iron, and other important products in the world Well, the market influence of "Zhengzhou price" has been continuously improved, which has effectively promoted the modernization of the bulk commodity market and helped the construction of China's multi-level market system.

Serve the implementation of major national policies

Over the past 30 years, the exchange has continuously improved the futures variety system, strengthened the market construction, continued to be close to the market to carry out innovative services, close to the spot market, and constantly improved the contract rules and regulations. Through giving full play to the role of the market, it has achieved remarkable results in serving the national strategy and the real economy.

According to the relevant person of Zhengshang exchange, at present, the price discovery function of main varieties is good, and the futures and spot price trend of most varieties keeps high consistency. The correlation coefficient of futures and spot prices of over 70% varieties is above 0.9, which is of great significance for forward price guidance. For example, if the correlation coefficient of the spot price of sugar futures remains above 0.95 for a long time, "wind vane" plays a good role. The important domestic production, import processing and trading enterprises take the change of sugar futures price as the basis for formulating the spot sales strategy, and adjust the sales strategy and price according to the market changes.

It is understood that in the process of increasing downward pressure on the economy and the gradual de capacity of the industry, while the volatility of product prices has increased, the period of time under the enterprise's cost line has been lengthened, and the demand for risk management of enterprises has become stronger, and it is necessary to use the futures market to stabilize business.

In terms of helping to de inventory, many industries have higher requirements for continuous production. In order to ensure normal production, they need to hoard a large number of raw materials and occupy storage capacity and capital. After the relevant futures products are listed, enterprises can use the futures market for target inventory management. By establishing "virtual inventory" in the futures market, enterprises can adjust the inventory level at any time to avoid accumulating too much spot inventory.

Down to earth service for agriculture related industries

Futures market originated from agriculture and serves agriculture. The futures market should be open and transparent, and the futures market should be timely and authoritative. Once the futures prices of agricultural products are generated, they will be provided to the market in real time and free of charge. This will alleviate the problems of information asymmetry and low transmission efficiency between buyers and sellers and regions under the pattern of "small production and large market" in China's agriculture. It will help to guide the rational flow of resource elements and improve the overall efficiency and quality of agricultural supply system.

According to the relevant person of Zhengshang stock exchange, through futures hedging, agricultural entities can effectively transfer the price risk of agricultural products they are facing and stabilize production and operation activities. Driven by leading enterprises, various industrial chains have developed a variety of flexible trading methods by using the futures market, such as basis trade, including right trade, etc., and the business mode of enterprises is further enriched.

In addition, the financial attributes of futures warehouse receipts also open up ideas for the financing of agricultural enterprises. The standard futures position is pledged to the futures exchange, and the annual interest rate of commission conversion is only 0.9%, which can effectively reduce the cost of real enterprises.

Finally, "insurance + futures" is another main position for Zheng merchants to play the market function and serve "agriculture, rural areas and farmers". Since the No.1 document of the Central Committee of the people's Republic of China clearly proposed to carry out the "insurance + futures" pilot project in 2016, a total of 78 "insurance + futures" pilot projects have been established, involving cotton, sugar, apple, jujube and other varieties, covering 38 national poverty-stricken counties in Xinjiang, Gansu, Shaanxi, Guangdong, Guangxi, Yunnan and other provinces (autonomous regions), involving nearly 100000 households.

Private economy is the most dynamic element in the economic development of contemporary China. The data shows that private enterprises' participation in the futures trading of Zhengzhou mercantile exchange is good in recent three years, and nearly nine of the industrial customers directly involved in the trading of most varieties have become private enterprises. Among them, the number of private enterprises participating in cotton futures is the largest, reaching 939.