To implement the requirements of the No. 1 Central Document and the arrangements of the State Council and the China Securities Regulatory Commission and guide the futures market to serve the key tasks of securing a decisive victory in building a moderately prosperous society in all respects and eliminating poverty, Dalian Commodity Exchange (DCE) releases the “Notice on Application of 2020 DCE Peasants Income Guarantee Plan” on March 1 and continues the “Peasants Income Guarantee Plan” (the “PIG Plan” for short) based on the futures market.
DCE piloted the over-the-counter options service in “agriculture, rural areas and peasants” in 2015 and initiated the “insurance + futures” mode. The “insurance + futures” mode has been included in the No. 1 Central Document for 5 consecutive years since 2016 and been widely adopted in the futures market, attracting the participation of futures companies, insurance companies, banks and many other financial institutions. Over the past 5 years, DCE has deepened the “insurance + futures” pilot and expanded it into the “PIG Plan”. In 2019, DCE carried out 12 town-full-coverage “PIG Plan” projects in the Northeast China and Shandong Province, verifying the advantages and feasibility of the “insurance + futures” mode in greater magnitude, and meanwhile conducted 65 discrete pilot projects.
An official of the DCE Industry Development Department says that DCE will further optimize and expand the “PIG Plan” in 2020 and encourage the projects that support the poverty alleviation and the epidemic area in Hubei Province in the principle of serving the national strategies. Besides, it will encourage sustainable projects with standard operation and good effects and set typical cases as models. To call up all forces to assist the peasants guarantee, DCE will support the projects in which government departments and market participants make co-payment and offer integral services.
The 2020 “PIG Plan” is constituted by the town-full-coverage projects and the discrete projects in the modes of the “insurance + futures” income insurance, the “insurance + futures” price insurance and the over-the-counter options. And the “insurance + futures” income insurance projects for planting products can have the basis purchase projects as attached. The DCE “PIG Plan” should adopt the DCE futures price and index price as the benchmark price and the Dalian futures market as the risk diversification method and encourage risk hedging through the listed exchange-traded options of DCE.
