【2021 Chairman's Interview】 Whether Xinhua's harvest is successful depends on market perception.

【2021 Chairman's Interview】 Whether Xinhua's harvest is successful depends on market perception.
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  • 【2021 Chairman's Interview】 Whether Xinhua's harvest is successful depends on market perception.
At the 2021 China International Cotton Conference held in Wuxi, Jiangsu on June 17, Wei Gangmin, chairman of Henan Tongzhou Cotton Industry Co., Ltd., accepted an interview with the conference host on the topic of "Futures and Spot Trading Strategies and Risk Management."
Host: Tongzhou Cotton is a very influential private enterprise in China, and its development has been rapid in recent years. Is its main profit point in futures or spot trading? Which proportion is larger?
Wei Gangmin: Both futures and spot trading, but spot trading is likely more than futures.
Host: During this year, that is, the cotton harvest season in September and October last year, there was a futures-spot price inversion. For traders, the most urgent issue is whether to buy or not?
Wei Gangmin: Your question involves both unilateral and basis logic. The prerequisite you give is that you are primarily focusing on unilateral trading. After buying or selling, you will worry about what to do if you buy high. The reason is simple: your initial intention is to analyze the future price support of the market and then find the corresponding strategy. If you sell and use time to exchange for space, and you want to rise and gain profit, it's simple; you just hold the spot goods. If you analyze that the future price will fall after a period of time, it's also easy to handle; that is, stop loss. Or you can replace it in advance, sell the spot goods and exchange them for futures. What do you do with futures? If the spot goods are sold, the futures position is stopped out; if they cannot be sold, hold the position and resolve the contradiction through this.
Host: Very good. What Mr. Wei said can be elevated to a theoretical level. Traditional hedging involves three elements: the same time, the same quantity, and opposite directions. Using this to hedge, last year's situation was in opposite directions, one high and one low. It's not that you hedge one ton for every ton you buy; it's a mismatch in time, and the quantity can be unequal. How can we ensure that this function is utilized through the futures market under the new situation?
 

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【2020 Chairman's Interview】Three Core Contradictions Facing the Cotton Market

Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance

Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance

On March 3, Wang Yongqing, Vice President of Xiamen CNOOC Group, visited Tongzhou Group for investigation and guidance. Wei Gangmin, Chairman of our company; Huang Hongyu, President; Li Tao, Vice President; and Zhang Zhiyan, Director of the General Office, met with and participated in a symposium.

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Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance
Tongzhou Cotton Market Brief, Week 1 of March 2025

Tongzhou Cotton Market Brief, Week 1 of March 2025

1) This week's National People's Congress and the Chinese People's Political Consultative Conference (NPC & CPPCC) in China boosted market expectations for steady growth. In February, the Purchasing Managers' Index (PMI) for manufacturing stood at 50.2%, up 1.1 percentage points from the previous month, indicating a significant improvement in the manufacturing sector.

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Tongzhou Cotton Market Brief, Week 1 of March 2025
In 2024, China's exports of dyed and printed fabrics to Vietnam and Bangladesh increased significantly.

In 2024, China's exports of dyed and printed fabrics to Vietnam and Bangladesh increased significantly.

In 2024, China's dyeing industry saw rapid export growth to ASEAN and RCEP member countries, exceeding the overall export growth rate. However, this growth was accompanied by a decline in prices. From January to December, China's exports of eight major dyeing products to ASEAN totaled 7.908 billion meters, a year-on-year increase of 12.14%, 4.61 percentage points higher than the overall export growth rate, accounting for 23.58% of total exports. The average export price was US\$1.19 per meter, a year-on-year decrease of 2.75%, 0.64 percentage points lower than the overall decline. Exports to RCEP member countries totaled 8.431 billion meters, a year-on-year increase of 11.35%, 3.82 percentage points higher than the overall export growth rate. The average export price was US\$1.17 per meter, a year-on-year decrease of 2.79%, 0.60 percentage points lower than the overall decline.

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In 2024, China's exports of dyed and printed fabrics to Vietnam and Bangladesh increased significantly.
President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

On February 28, Mr. Huang Hongyu, President of our company, was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference and, as a guest speaker at the "Xiangshan Roundtable," shared his views on the cotton market and trading opportunities.

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President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

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