Study On Security Effect Of Cotton Futures Market On Cotton Industry In Xinjiang

Cotton industry has an unraplceable position in the development of national economy in Xinjiang. Xinjiang's cotton industry has a great progress since its'economic reform and opening. Recently, accompanying with the reform of cotton circulation system and marketization, some problems are expose to the daylight which hamper the development of Xinjiang cotton industry. Futures market is the most powerful tools serving for the current trading in the financial markets. As a part of the virtual economy, the cotton futures market has been serving for the real economy. However, as a result of the Xinjiang cotton futures market research lag, the cotton futures market participation degree is extremely low. As an important component of the virtual economy, the cotton futures market has not displayed its function in safeguarding the healthy development of Xinjiang cotton industry. Therefore, strengthening the research of Xinjiang cotton futures market, and exploring an effective way of using the cotton futures market based on Xinjiang cotton industry realities have the vital significance and value in enhancing Xinjiang's comprehensive agricultural production capacity and cotton processing industry's competitiveness, and increasing farmers'income.This thesis uses the methods of induction, systemizing, and the combination of qualitative and normative analysis, the combination of theoretical and empirical study to analyze the cotton futures market's function in safeguarding the healthy development of cotton industry. The thesis consists of six chapters as follows:The first chapter is Preface, the background of the selected topic, significance of research, domestic and foreign research tendency, research mentality, research technique and the innovation are introduced. Chapter two:the history,current situation and the problems in Xinjiang cotton industry were introduced. Chapter three, we introduce the negative effect on the Xinjiang cotton industry which brings by the fluctuation in cotton price on the basis that we analyze the reason resulting in fluctuation. Chapter four:we introduced the cotton futures market's safeguarding function theoretically and put forward its'four concrete function:inner stabilization tools,foundation for policy making,foundation for micro-activities. Chapter five proves that cotton futures price had a co-integration relationship with current price and the cotton futures market can swap the percentage of 20.8's non-systemic crisis in current market. Finally, proposals are made on how to improve the cotton futures market to protect the Xinjiang cotton industry development, and this provides the policy basis for the government decision-making.