Since the beginning of this year, the financial industry has continued to increase its support for Xinjiang's cotton spinning industry. On June 3, the "Xinjiang Cotton Textile Industry Innovation Management Seminar" aimed at promoting the transformation and upgrading of local related industries was held in Aksu. The professionals at the meeting said that the recent global epidemic has been under control and the macro policy has shown a shrinking trend, but the market is uncertain There are still many sexual factors. Enterprises in the cotton textile industry chain should fully learn to use the futures and derivatives market functions to avoid market risks and upgrade their business models.

This seminar was hosted by the Xinjiang Uygur Autonomous Region Industry and Information Technology Bureau, Xinjiang Production and Construction Corps Industry and Information Technology Bureau, supported by Xinjiang Uygur Autonomous Region Local Financial Supervision Bureau and Zhengshang, and undertaken by Aksu Prefecture Industry and Information Technology Bureau, Xinjiang Textile Trading Center and Huarong Rongda Futures . At the meeting, relevant professionals conducted in-depth explanations and analysis on the macroeconomic situation in 2021, the cotton/yarn market in 2021, the operation of cotton yarn futures, the yarn pledge financing model, and how cotton spinning enterprises can use the futures market to avoid operating risks. A total of more than 130 representatives from various regions, prefectures and municipal government departments in southern Xinjiang, 78 cotton spinning enterprises and cotton and cotton yarn trading and trading units attended the meeting.

　　 Huarong Rongda Futures Macro Researcher Gorgeous stated in his keynote speech that since the beginning of May, the development of the global epidemic has generally slowed down and global vaccination has accelerated. From the perspective of the Sino-US economy and policies, China’s economy has peaked month-on-month, and credit continues to shrink; the US is facing "weak employment" and "strong inflation", and the signal for a gradual reduction of QE is gradually approaching. In September, a clear QE exit signal may be released. In terms of exchange rate, factors such as US vaccination, economic recovery, and narrowing interest margins have all provided support to the US dollar. However, its rebound space is suppressed by the Fed’s dovishness. The timing of the change may appear in the second half of the year before and after the US begins to discuss QE reduction. , If the Fed's policy direction changes, it will promote the strengthening of the dollar.

Xie Ting, deputy manager of the Industry Research Department of China Cotton Information Network, said that the current situation of epidemic control is generally improving, overall consumption continues to recover, and global cotton ending stocks continue to decline. Given that my country's epidemic-beneficial exports will continue, there is demand for 2020/21 Be cautiously optimistic. From the perspective of industrial operation, this year's positive results have been reflected in the previous rise. The room for continued growth in the future depends on whether the expected growth of consumption can be fulfilled and the sustainability of orders. For the market outlook of cotton and cotton yarn, three aspects need to be paid attention to: one is the expected deviation, such as the risk of market volatility caused by the difference between the cotton output of the major cotton-producing countries in the northern hemisphere and the market expectations in the next year; the second is to pay attention to Sino-US relations and the "return of the United States." Repair the related chain effects caused by allies; the third is to pay attention to the development trend of the epidemic, the support of macro funding policies, and the inflation caused by the frequent occurrence of the US dollar.

　　 Li Jingli, director of the Financing Service Department of Xinjiang Textile Trading Center, gave a targeted business explanation on the problems faced by the Xinjiang textile industry. According to reports, the Xinjiang Textile Trading Center is the only textile commodity trading platform approved by the People’s Government of the Autonomous Region. Its core service is "supply chain finance + yarn warehouse receipt pledge business", helping traditional textile enterprises to solve the problem of single procurement methods. And problems such as difficulty in financing and expensive financing.

Huarong Rongda Futures Cotton Analyst Wan Xiaoheng analyzed the diversified business strategies of cotton spinning enterprises in the post-epidemic era. He said that since 2021, the price of raw materials has shown an overall upward trend, and the fluctuation range of cotton prices is still higher than that of chemical fiber staple fibers. The upstream, middle and downstream enterprises of the cotton spinning industry chain are faced with difficulties in controlling the quality of lint cotton and uncertain prices at both ends of the purchase and sale. Enterprises in the industry chain should fully learn to use the functions of the futures and derivatives market and participate in hedging, cash arbitrage, basis trading and Trade with rights, etc., transfer risks and stabilize operations.

　　 The holding of this seminar enabled Xinjiang textile enterprises to learn more about the nature and functions of cotton and cotton yarn futures, and made active publicity and guidance preparations for enterprises to use futures and derivative tools. The relevant person in charge of Huarong Rongda Futures said that in the next step, the company will continue to promote risk management tools such as futures and options, and increase its service to Xinjiang textile enterprises, so as to give full play to the functions and functions of the cotton and cotton yarn futures market. It will help the Xinjiang textile industry to improve the level of scientific operation.