"Insurance+futures" has been written into "No. 1 central document" for eight consecutive years

2023-02-15

In 2023, the No. 1 central document was officially released, in which it was clearly proposed to "play the role of multi-level capital markets in supporting agriculture and optimize 'insurance+futures'", which was also mentioned for eight consecutive years since it was first written into the document in 2016. In the view of many insiders, as an important branch of the financial market, how to combine futures with insurance, banks and other financial institutions at multiple levels will be the focus of the capital market in the future. Chen Chi, the business director of COFCO Futures "Insurance+Futures", told the reporter of Securities Daily that this year's No. 1 central document first mentioned "giving play to the role of multi-level capital market in supporting agriculture", and then "optimizing" Insurance+Futures ", which will further promote the optimization and development of the business model. "Insurance+futures", as a business to solve the risks that have long plagued the healthy development of "agriculture, rural areas and farmers", uses the most straightforward language to talk about finance to ordinary farmers, and uses the most practical methods to solve problems for farmers. Continue to innovate financial products supporting agriculture This year, the No. 1 central document of the Central Government proposed to optimize "insurance+futures". Many insiders believe that in the future, we should continue to innovate financial products that support agriculture and benefit agriculture. "Rice, wheat, corn and soybeans are China's staple food and important agricultural products. Whether the planting cost and income are stable and controllable is the key factor to determine whether the crops can be stably produced and supplied." Chen Chi said that according to the policy requirements, the futures market needs to adapt to the actual production and focus on the development of innovative financial products such as "insurance+futures" and over-the-counter options, as a supplement to complete cost insurance and income insurance, More comprehensive protection of farmers' income, so that farmers can work at ease. Li Renjun of Minmetals Futures Options Business Department told the reporter of Securities Daily that optimizing "insurance+futures" requires the futures market to improve the connotation of futures market serving "agriculture, rural areas and farmers" in the traditional mode of supporting agriculture and helping agriculture. "With the increasing number of agricultural products futures and options in recent years, derivatives have become a gold-lettered signboard to serve the real economy. Next, the futures market should actively expand the 'insurance+futures' project of newly listed varieties and other agriculture-related services, and jointly implement the requirements for stable production and supply of grain and important agricultural products." Li Fu, general manager of Yangtze River Futures Industry Service Headquarters, told reporters, In accordance with the requirements of "grasping the stability of production and supply of grain and important agricultural products", the futures market still needs to actively cultivate the relevant participants of agricultural products futures in China, improve the recognition of futures tools, and continuously expand the futures market to serve "agriculture, rural areas and farmers" and rural revitalization through the innovation of the service model of derivatives tools such as futures, options, and "insurance+futures", improve the ability of the agricultural industry to resist price risks, and help ensure supply and price stability. The optimization of the "insurance+futures+N" model is understood that in recent years, the "insurance+futures" business has shown a trend of flowering in many aspects in the service of "agriculture, rural areas and farmers". On the one hand, it continues to innovate the service model, and on the other hand, it expands the service content. On the whole, it has achieved remarkable results. As the initiator of the "insurance+futures" model, in the major strategic deployment work of "insurance+futures", soybean expansion, and pig supply and price stability in 2022, Dashang Institute helped farmers to achieve safe planting and breeding services. In 2022, the "insurance+futures" project

Edit:Hou Wenzhe    Responsible editor:WeiZe

Source:Securities Dairy

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