China resumed the trading of cotton futures on central China's Zhengzhou Commodity Exchange on Tuesday, the first futures product China re-launched since its crackdown on irregularities involving trading of futures products in the past few years.
The resumption of the trading came nearly one month after the China Securities Regulatory Commission (CSRC), the country's futures and securities watchdog, gave the green light to the trading.
CSRC Chairman Shang Fulin said the trading will help improve the cotton market system and provide future price information for cotton growers.
According to a brief introduction by the commission, China, the world's biggest cotton producer and consumer, accounts for one third of global cotton output and consumption. It liberalized trade of cotton and pricing in 1998.
China's annual cotton output stands at 5 million tons while its consumption reaches 6 million tons, resulting in growing exports.
China's major cotton producers and consumers are Xinjiang Uygur Autonomous Region, Shandong, Hebei and Henan provinces, the Yangtze River Delta and the Pearl River Delta.
(Xinhua News Agency June 2, 2004)
