Cotton pact made in Beijing
Local media have reported that Zhengzhou Commodity Exchange (ZCE) and China National Cotton Group jointly signed a strategic cooperation agreement in Beijing in late November.
According to the agreement, both bodies will “continue to deepen the cultivation and promotion of the cotton and cotton yarn futures market”, plus carry out market research, explore risk management and investigate pilot warehousing initiatives, among other plans.
As a major domestic cotton importer, China National Cotton Group will bring its experience and suggestions to the table with ZCE, with the intention to assist the Chinese cotton futures market with “going international”.
The two parties will also work together to “explore the participation” of imported cotton in Chinese fulfilment and other enterprises, as well as take steps to ensure that the cotton futures market “better serves” domestic stakeholders.
China is currently the world’s largest cotton consumer, in addition to its second-largest cotton producer.
Image: Xinhua Silk Road Information Service.
