Wang Xiaoming, deputy general manager of ZhengShang Firm: The futures market has become an indispensable and important part of serving rural revitalization

Wang Xiaoming, deputy general manager of Zhengzhou Commodity Exchange (hereinafter referred to as Zhengshang), said at the "Futures Service Rural Revitalization Sub-Forum" of the "2021 China (Zhengzhou) International Futures Forum" on September 1 that the historic shift from poverty alleviation to comprehensively promoting rural revitalization has put forward higher requirements for the futures market, and also provided a broader space for the development of the agricultural futures market, and the futures market has become an indispensable part of serving rural revitalization.

According to Wang Xiaoming, since 2000, 17 of the 18 central No. 1 documents focusing on "three rural areas" have mentioned the futures market; in the 2021 Central No. 1 document, the relevant "industrial development" has been mentioned 35 times, and the futures market has become an indispensable part of serving rural revitalization.

Wang Xiaoming said that in the opening year of the comprehensive implementation of the rural revitalization strategy, in order to effectively consolidate and expand the effective connection between poverty alleviation and rural revitalization, Zheng Shang continued to improve the ability and level of futures service rural revitalization, explored innovative measures to serve rural revitalization, and focused on industrial revitalization, through the holding of "Futures Service Rural Revitalization Forum" and other activities, widely mobilized the forces of all sectors of society to form a multi-level, multi-channel, multi-faceted pattern of rural revitalization.

First, the agricultural futures variety system has been continuously improved. At present, ZhengShang has listed 23 futures varieties and 6 option varieties, including 15 agriculture-related futures varieties and 3 options, covering grain, cotton, oil, sugar, fruit and agricultural materials. In order to help the development of characteristic industries in poor and remote areas, two characteristic agricultural futures varieties of apples and dates have been listed since 2017, effectively promoting the industrialization of agriculture in poor areas. In 2018, the governments of the main apple-producing districts such as Yanchang County actively referred to futures prices to guide the sales of fruit farmers, and in the case of an 8% reduction in production in the county, the overall sales price increased by 30% year-on-year, and the total income of fruit farmers increased by 20%, which played an active role in solving the problems of "reduced production due to disasters, different prices for the same fruit, and difficult harvests in good years" in the apple industry. In addition, Zheng Shang has also set up 15 delivery warehouses in 12 state-level poverty-stricken counties to help the development of local advantageous industries and warehousing and logistics industries, increase local employment, and futures tools have become financial "sharp weapons" for serving the revitalization of rural areas in major production areas.

Second, the function of varieties has been played well, and the service effectiveness has been continuously improved. In the 2020 annual futures variety function assessment results organized by the CSRC, Zheng Shang's cotton, rapeseed meal and vegetable oil agricultural product varieties were rated as Class A, with a hedging efficiency of more than 90% and a futures price correlation coefficient of more than 0.9, providing good conditions for agriculture-related enterprises and farmers to refer to futures prices and use futures tools. ZhengShang continued to improve the varieties of cotton and white sugar futures, optimized the layout of delivery warehouses, adjusted the benchmark price area, guided cotton and sugar industry enterprises to use futures and derivatives for risk management, promoted the stable operation of relevant enterprises and the stable income of farmers, and effectively promoted the expansion of industrial advantages in Xinjiang, Guangxi and other regions, and promoted industrial prosperity.

Third, the pilot project of "insurance + futures" has continued to expand, escorting farmers to increase income. "Insurance + futures" has become an important starting point for serving the "three rural areas" and helping rural revitalization, in the past 5 years, Zhengshang has supported the development of 105 "insurance + futures" pilots, involving 4 varieties of cotton, sugar, apples and dates, covering 43 state-level poverty-stricken counties, benefiting 163,900 farmers, including more than 70,000 poor households with established archives, providing an important guarantee for farmers in poor areas to cope with the risk of agricultural product price fluctuations and increase their income steadily.

The fourth is to actively carry out market cultivation and gather multiple forces. Since 2021, Zheng Shang has cooperated with the people's governments of Yan'an City, Tongbai County and Jingning County to carry out 4 series of activities of the "Futures Service Rural Revitalization Forum" and will continue to carry out related activities. Through a series of activities, a long-term mechanism for cross-border cooperation between Zhengshang, local governments, insurance, banks and other units has been formed to jointly serve rural revitalization. In addition, the exchange cooperated with the medium-term association to mobilize all sectors of society to carry out in-depth service activities for small and medium-sized enterprises, continue to carry out the construction of "industrial bases", and deepen the rural revitalization action.

The fifth is to do a good job in consolidating the effective connection between poverty alleviation and rural revitalization, and help the rural revitalization of designated poverty alleviation counties. In accordance with the unified deployment of the CSRC, Zheng Shang firm conscientiously implemented the responsibility of designated assistance to Tongbai County, Henan Province, helped the development of characteristic industries, increased the strength of Zhizhi double support, continued to promote consumption assistance, and invested a total of 41.77 million yuan in assistance funds, introduced 14.36 million yuan of assistance funds, and mobilized industry units to donate 9.36 million yuan to promote the high-quality economic development of Tongbai County.

Wang Xiaoming further said that this year is the beginning of the "14th Five-Year Plan", in order to better implement the "Opinions of the Party Central Committee and the State Council on the Implementation of consolidating the achievements of poverty alleviation and effectively linking with rural revitalization" and continue to do a good job in serving rural revitalization, Zheng Shang will further deepen its work measures from the following aspects:

The first is to enrich the supply of agriculture-related varieties and tools. ZhengShang will continue to adhere to the needs of the agricultural industry chain as the guide, accelerate the listing of chicken futures, deepen the research and development of potatoes, sunflower seeds, garlic and other characteristic varieties in production areas, and continue to expand the coverage of the futures market to serve the development of the agricultural industry.

The second is to continue to innovate rural revitalization service methods. Joint local governments continue to carry out activities such as "Futures Service Rural Revitalization Forum", "Futures Service SME Theme Activity", "Commodity Risk Management Forum", and focus on supporting member units to carry out activities for service industry enterprises, especially small and medium-sized enterprises, to escort the operation and development of agriculture-related SMEs. Continue to optimize the construction of "industrial bases", give play to the demonstration and leading role of leading enterprises, and form a market service pattern of "market leader, leading base, base and farmer".

The third is to deepen the effectiveness of "insurance + futures" and vigorously promote the "futures +" service mode. Consolidate the results of the "insurance + futures" pilot carried out in the previous period in the areas that have been lifted out of poverty, continue to expand the scale of the pilot, increase the variety of pilots, and tilt to the key counties of rural revitalization, combine "poverty alleviation" with "support for excellence", and change from "blood transfusion" to "hematopoiesis". Further deepen cooperation with the banking and insurance industries, and continue to solve the pain points of bank credit movable property pledge and the difficulty of risk transfer of insurance companies through warehouse receipt trading, "insurance + futures + banking" and other methods, and solve the problem of "urgent difficulties and expectations" of agricultural enterprises.