Research And Development Of Cotton Yarn Futures Sound Variety System

Zhang Fan, director general of Zhengshang, said yesterday that it is one of the priorities of this year's business to do fine and meticulous futures. On the basis of ten years management experience of cotton futures, we should actively expand the cotton industry chain upstream and downstream varieties, develop cotton yarn futures, and improve cotton cotton yarn futures variety system, which is a part of fine cotton varieties. Zheng Shang will conduct extensive research, pay close attention to the spot market, carefully design cotton yarn futures contracts, and launch cotton yarn futures as soon as possible, for the majority of cotton involved. Spin Enterprises provide services.

He made the above remarks at the consultation and consultation conference on the design of cotton yarn futures contract system held in Nantong yesterday.

Cotton yarn is a direct downstream species on the cotton industry chain, and the cost of spinning accounts for more than 60% of cotton cost. The price of cotton yarn is determined entirely by market supply and demand. National Bureau of statistics data show that China's textile enterprises above Designated Size cotton yarn production about 23000000 tons, output value of about 600000000000 yuan. In recent years, the cost of spinning and weaving has increased a lot. We hope to introduce cotton yarn futures as soon as possible, and provide price discovery and hedging tools to ensure sound operation of enterprises. Ma Xiaohui, general manager of Jiangsu Dasheng group, said. During the forum, many textile enterprises expressed the same voice.

It is understood that cotton futures since June 1, 2004 in Zhengshang listed transactions, a total of more than 4000 cotton companies involved in the use of futures market to avoid price fluctuations, and achieved good results. Many people in the industry who participated in the discussion believe that cotton yarn and cotton The participants in the spot market have a large overlap. Enterprises participating in cotton futures trading will be able to "get started" more easily after the introduction of cotton yarn futures. At the same time, cotton yarn and cotton prices have strong linkage. The arbitrage transaction between the two should also be one of the factors to be considered in the design of Zheng's contract system. To carry out the cotton yarn and cotton arbitrage transaction, we can make full use of the policy of the exchange to collect unilateral margin premium for arbitrage and reduce the transaction cost of investors.

The participants also made specific suggestions on the cotton yarn contract designed by Zheng Shang from the aspects of contract system, delivery system, wind control system and settlement system. Zheng Shang said that it would further investigate and extensively consult the spot enterprises, making the relevant system design more suitable for the needs of the spot market and the real economy.

Nearly twenty Jiangsu involved cotton spinning Representatives of weaving enterprises and some Futures Company participated in the demonstration meeting. On the day of the demonstration, Zhang Fan and his colleagues went to the two enterprises of Jiangsu Dasheng group and Nantong textile holding group respectively.