Give full play to the advantages of risk management companies, futures and cash combined with institutional bonds and bridges
June 27 this year is the sixth United Nations "Micro, Small and Medium Enterprises Day".In order to vigorously support the development of small and medium-sized enterprises, since April 2022, two sessions of "Themed Activity of Futures Services for Small and Medium-sized Enterprises under the Background of Guaranteeing Supply and Stable Prices" jointly organized by China Association of Small and Medium-sized Enterprises, China Futures Association and Zhengzhou Commodity Exchange have been held. 26 games in total.The event invites executives of futures companies, leaders of industry associations, heads of risk management companies, industry experts, representatives of spot companies, and heads of delivery warehouses to share futures services for the real economy, business models for futures-spot combination, market analysis methods for varieties, and internal control mechanisms for enterprises Construction, delivery services, etc., to meet the risk management needs of small and medium-sized enterprises in multiple dimensions.
A reporter from Futures Daily learned that the 8th theme activity since June this year has been closely combined with the policy of stabilizing the general market, the current epidemic situation and the requirements for easing difficulties for small and medium-sized enterprises, focusing on the "cost reduction" and "financing" of futures services for small and medium enterprises 6 themes such as "guaranteing sales", "stabilizing supply", "avoiding risks" and "increasing efficiency", selected 12 key members in Shanghai that have been severely affected by the epidemic as partners, and played the role of risk management companies, futures and current institutions. Advantages, focusing on polyester, chemical, textile and other industries that have been greatly affected by the epidemic, focusing on sharing and introducing futures, options, swaps and other application models and typical cases, and leveraging the power of China Association of Small and Medium Enterprises to further expand the coverage and Penetration, and enhance the breadth and depth of futures services for small and medium-sized enterprises.
Fang Huiling, head of the agricultural product group of the Orient Securities Derivatives Research Institute, said in her speech on "Analysis and Prospects of the Cotton Spinning Industry under the Epidemic" that from the perspective of the domestic market, the cotton sales progress of the upstream ginners was more than 40% slower than that of the previous year, and the ginners' inventory There is a lot of pressure on sales. Over time, the pressure on loan repayment will increase, and sales will become more passive. At present, the willingness to reduce prices and go to warehouses has increased.Downstream textile enterprises are in a state of high finished product inventory, low raw material inventory, low load, and substantial production losses for textile enterprises. At present, the textile market has entered a low season. Although the downstream marginal demand is expected to improve with the improvement of the epidemic situation, the current order situation is still In addition, the cash flow is affected by the high product inventory of textile enterprises, and the company's expectations for the future have not improved significantly, and they are still cautious about raw material procurement.
Zhang Chi, chief researcher of Guotai Junan Futures Chemical, gave a speech on "Analysis and Prospects of the Polyester Industry under the Epidemic".Zhang Chi's analysis believes that the strength of crude oil and other raw materials supports PTA prices, but the driving effect is gradually weakened, and the weak downstream demand limits the room for PTA prices to rise.In June, there will generally be pressure on the capital side. Coupled with the impact of the Fed’s interest rate hike, it is difficult to expand the demand for the PTA terminal industry. The current contradiction in the polyester industry is that the terminal demand is not good and the entire industry chain is low profit.
In this context, due to factors such as small business scale and weak capital strength, SMEs are generally weak in anti-risk capabilities.The futures market can help companies rationally arrange production and operation, lock in production costs, and obtain expected profits.
It is understood that as of now, my country has listed 84 commodity futures and options varieties, covering energy, grain, metals and other important fields related to the national economy and people's livelihood, involving more than 60 industrial chains, which are commodities with a value of 22 trillion yuan. escort”, weaving a relatively complete risk management network serving real enterprises.As a direct provider of risk management services, after years of exploration, futures institutions have gradually formed a variety of business models such as warehouse receipt services, basis trade, trade with rights, and OTC derivatives, and their ability to serve the real economy has been continuously improved.
Ma Chi, deputy general manager of Orient Securities Runhe Capital Management Co., Ltd. (hereinafter referred to as Orient Securities Runhe Capital), introduced three business models for futures and derivatives to serve cotton companies under the epidemic at the meeting, namely basis trade, rights-inclusive trade Trade and Financing Services."Taking financing services as an example, we link the upstream and downstream of the industrial chain by providing financing services. The ginning factory delivers the goods to Orient Securities Runhe Capital, and Orient Securities Runhe Capital temporarily pays the purchase price. The factory locks in the supply and follows the market price." Ma Chi said that for ginning factories, it can stabilize sales channels, lock in profit margins, and enjoy the protection of futures and subsidy of options; for textile factories, it can lock in raw material resources and stabilize production. , pick up the goods in batches, and enjoy the protection of futures and the discount of options.
Regarding the financing problems of enterprises in the process of production and operation, Chen Zongwei, Director of Supply Chain Finance Department of Shanghai Xinhu Ruifeng, also introduced three modes of warehouse receipt service: First, warehouse receipts are purchased on behalf of enterprises to assist enterprises in financing, and downstream customers entrust risk management companies to Warehouse receipts are purchased in the market, and the risk management company purchases and holds them from upstream enterprises, and supplies goods to downstream customers within the agreed time.Second, warehouse receipt agency sales help enterprises to finance, upstream customers entrust the warehouse receipts they hold to risk management companies for sales, and risk management companies sell them for delivery or sell them to other companies.The third is warehouse receipt purchasing + basis lock-in (basis trade), which can help corporate financing and hedging risks. Downstream customers entrust risk management companies to purchase warehouse receipts in the market and lock the basis. There are and sell for hedging, and supply goods to downstream customers at the agreed basis within the agreed time.
Chen Zongwei cites the example of warehouse receipt agency selling to help companies raise funds.At the beginning of March 2021, the spot ex-factory price of A ferrosilicon of a ferroalloy plant was 7050 yuan/ton, the basis difference was -676 yuan/ton, and the reference contract was SF2105.In order to quickly withdraw funds, Enterprise A finds a risk management company for delivery on behalf of the company, and the risk management company registers the spot as a warehouse receipt and holds it until futures delivery."Through the risk management company's warehouse receipt agency sales model, it can be sold at a price in the futures market, which can not only sell at a better price than the spot market, but also quickly recover funds, broadening the company's sales channels."
At the meeting, Changle Jinshagang Textile Co., Ltd. (hereinafter referred to as Jinshagang) expressed itself as a representative of the enterprise.Jiang Shan, deputy general manager of Jinshagang, said that the company's annual spinning capacity is about 1 million spindles. If the traditional one-price trade is used, although the operation is simple, the risk of price fluctuations is high. With the help of the derivatives market, both buyers and sellers can conduct basis trade. , which converts large fluctuations in absolute price into small fluctuations in the basis, which greatly reduces market risks. However, in recent years, the emerging trade with rights is based on the basis of basis transactions with an appropriate option structure, and options are used instead of futures for hedging. It can further reduce the occupation of disk margin and increase the basis income.
In May of this year, the price of upstream raw materials was strong, and Jinshagang was worried that the absolute price of subsequent raw materials would further rise; at the same time, the downstream orders were weak, and the terminal continued to accumulate inventory, resulting in a situation where the industry chain is strong and weak.In this context, Jinshagang purchased the raw materials required for 15-day production at a purchase price of 8,200 yuan/ton, and bought a put option with a 15-day entry price of 8,200 yuan/ton from the futures risk management company, paying 80 yuan/ton Insurance premium (royalty), the final purchase cost is 8280 yuan / ton."In this way, if the price of raw materials falls sharply, the falling income provided by our put option can protect our inventory, and if the price of raw materials rises sharply, it will not affect the profit of our subsequent inventory appreciation." Jiang Shan said.
Henan Tongzhou Cotton Industry Co., Ltd. (hereinafter referred to as Tongzhou Cotton Industry) is one of the large cotton-related enterprises in China, with an annual operation of more than 450,000 tons of cotton yarn.Huang Hongyu, president of Tongzhou Cotton Industry, introduced at the meeting that Tongzhou Cotton Industry, as one of the first cotton "industrial bases" of Zhengzhou Commodity Exchange, actively uses cotton futures and options to avoid the risk of price fluctuations. At present, more than 80% of the company's spot trade is used in conjunction with it. Futures and options instruments, by adopting the strategy of combining futures with cash and flexible hedging at home and abroad, to grasp the rhythm, which not only avoids the risk of price fluctuations, effectively guarantees their stable operation and healthy development, but also enhances customer stickiness through profit sharing, realizing the The business philosophy of win-win cooperation.Not only that, Tongzhou Cotton Industry also actively guides upstream and downstream and cooperative enterprises to learn to use futures and derivatives, playing a helping role of "big hands pulling small hands".
For real enterprises, the successful practice of risk management is also inseparable from a good risk control system.Huang Hongyu said that the premise of Tongzhou Cotton's use of derivatives to avoid risks is to strictly carry out risk control management.Futures hedging and arbitrage require corresponding positions. If there is exposure, it is equivalent to taking part of the position for speculative operations. Once the market develops in an unfavorable direction, the open position will face losses. The greater the exposure, the more losses. Extreme market conditions will bring greater risks to enterprises. Therefore, it is necessary to continuously strengthen the awareness of risk control and strictly carry out risk control management.
(Editor in charge: Zhang Haijiao)
