Cot­ton yarn fu­tures launched

China Daily (Hong Kong) - - BUSINESS -

China’s se­cu­ri­ties reg­u­la­tor ap­proved the launch of cot­ton yarn fu­tures on the Zhengzhou Com­mod­ity Ex­change, ac­cord­ing to an of­fi­cial state­ment. The cot­ton yarn fu­tures, to­gether with the cot­ton fu­tures that al­ready trade, will help com­pa­nies in the in­dus­try to hedge against and im­prove the man­age­ment of risks, the China Se­cu­ri­ties Reg­u­la­tory Com­mis­sion said. Fu­tures con­tracts oblige in­vestors to buy or sell un­der­ly­ing as­sets at a pre­de­ter­mined price at a spec­i­fied time, help­ing in­vestors mit­i­gate risks of price volatil­i­ties. Large and fre­quent fluc­tu­a­tions in cot­ton yarn prices have had neg­a­tive im­pacts on re­lated in­dus­tries in the past few years, and the launch of the cot­ton yarn fu­tures will be an an­swer to mar­ket de­mand, the CSRC said. The date for the start of trad­ing will be an­nounced later, it said. the bench­mark overnight Shang­hai Interbank Of­fered Rate, the cost at which Chi­nese banks lend to one an­other, rose by 10.2 ba­sis points to 2.72 per­cent. China has set the tone of its mon­e­tary pol­icy in 2017 as pru­dent and neu­tral, keep­ing an ap­pro­pri­ate liq­uid­ity level but avoid­ing ex­ces­sive liq­uid­ity in­jec­tions.

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