The 30Th Anniversary Is Over Again! Staple Fiber Listed On The Stock Exchange

The CFE was officially listed on the China Futures Exchange on December 30. So far, 86 futures and options have been listed in China. As an important part of China's modern financial system, futures market has become an indispensable "stabilizer" for the high-quality development of national economy, and plays an important role in serving the real economy and national strategy.

Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said in the listing activities that today marks the 30th anniversary of the establishment of the China Futures Exchange and the China futures market. It is a happy day for the futures industry and also a happy day for the Zhengshang exchange. In the face of the impact of this year's epidemic, we all worked hard to forge ahead and overcome difficulties. We have achieved steady progress in the futures market and strongly supported the recovery and development of the real economy. The function of risk management in the futures market has been tested again under extreme market conditions. This year, 10 varieties, including liquefied petroleum gas, low sulfur fuel oil futures and power coal options, have been successfully listed. Significant progress has been made in the construction of domestic energy futures market system represented by oil, coal and gas. In the first nine months, 4.265 billion hands (one-sided) and 302.80 trillion yuan in total were traded in the futures market, up 47.17% and 41.29% respectively year-on-year. In the case of significant increase in trading, the position also has a significant increase.

"The listing and trading of staple fiber futures today is the best birthday gift for Zhengshang and another achievement of the 30-year innovation and development of futures market." Fang Xinghai said that the listing of short fiber futures is an important measure for the futures market to thoroughly implement the "six stabilities" and "six guarantees". Staple fiber is an important raw material in textile industry. As a result, China's textile industry is facing the biggest impact of many factors such as the price fluctuation of staple fiber and short fiber consumption chain. Listed staple fiber futures can form authoritative, continuous and transparent futures prices, provide "indicator light" for industrial chain enterprises to carry out spot pricing and trade activities, facilitate enterprises to better manage risks and stimulate internal vitality; through physical delivery, warehouse receipt trading and other mechanisms, it can broaden enterprise sales channels, ease enterprise capital pressure, and help industrial chain stability and smooth supply chain It can further enrich the futures option varieties of textile plate, promote the textile industry to effectively connect with the capital market, accelerate the transformation and upgrading, improve quality and efficiency with the help of capital advantages.

Dai Baihua, vice governor of Henan Province, said in his speech that Henan provincial Party committee and provincial government attach great importance to the development of the financial industry, continuously deepen financial reform, and constantly enhance the ability of financial services to the real economy, providing strong support for high-quality economic development. Futures market is an important part of China's financial market. As the only futures exchange in the central and western regions, Zhengzhou Commodity Exchange has become an important futures and derivatives exchange in China, bearing in mind the purpose of serving the real economy, giving full play to its own advantages, continuously optimizing services, expanding the opening up, and constantly enriching the varieties of listed futures.

Dai Baihua said that the staple fiber futures listed today will provide more risk management tools for the development of the textile industry, which is of great significance for promoting the stability of market entities and industrial chain supply chain of Henan and even the national textile industry, and promoting high-quality economic development. Henan provincial government will, as always, attach importance to the development of futures market, vigorously support the reform and innovation of Zhengzhou Commodity Exchange, further enrich the variety system, continuously expand the global influence of "Zhengzhou price", and make greater contribution to the rise of central China.  

It is understood that polyester staple fiber, the target of staple fiber futures, is one of the main raw materials for the development of China's textile industry, along with cotton and viscose staple fiber. Staple fiber products have the concept of chemical industry and textile. The price of staple fiber products fluctuates frequently due to the influence of raw material cost, supply and demand structure, economic cycle, international market and other factors. According to statistics, from 2014 to 2019, the average annual fluctuation of staple fiber price will reach 33%. Short fiber production, trade and consumer enterprises are in urgent need of risk aversion, and have repeatedly called for the launch of staple fiber futures as soon as possible to provide enterprises with risk aversion tools.

He Li, vice president of China staple fiber industry association, can also provide a reference for the future of China Fiber Industry Association, Yanli Chemical Industry Association, etc. to formulate a continuous and transparent policy, which can be used as a reference for the future development of China's staple fiber industry. The upstream and downstream enterprises of the industrial chain can manage the operation risk by hedging, and also can lock in the purchase cost or sales profit in advance to ensure the stable operation of the enterprise. Staple fiber futures provides an effective risk management tool for polyester industry. It is hoped that relevant enterprises can learn futures knowledge deeply, study the operation rules of futures market, manage price risk with futures tools, and promote the stable and healthy development of enterprises.

"Over the past 30 years, Zhengshang Institute has always kept in mind the fundamental purpose of serving the real economy. It has never stopped innovating and developing, and has been forging ahead with the times and the country." Xiong Jun, President of the Institute, said that the Institute started with agricultural products,

Gradually developed into a comprehensive futures and derivatives exchange covering grain, cotton, oil, sugar, fruit and energy, chemical industry, textile, metallurgy, building materials and other important areas of the national economy. After the listing of staple fiber futures, together with the cotton, PTA futures options and cotton yarn futures listed on the Zhengzhou Mercantile Exchange, it will better play the "agglomeration effect" of the plate, form a more complete risk management tool system for polyester and textile industries, help the high-quality development of related industries, further enhance the international competitiveness, and enhance the discourse power of pricing. In accordance with the requirements of China Securities Regulatory Commission (CSRC), Zhengshang exchange will work with relevant parties to cultivate and promote the staple fiber futures market, maintain the smooth operation of the market, and help the real economy to accelerate the recovery and development.