Hbot's PTA/MEG Trading Capacity Surpass 30,000 Tons in 2014

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Dec 23, 2014, 08:25 ET

HANGZHOU, China, Dec. 23, 2014 /PRNewswire/ -- Since the launch of PTA/MEG on March 6th, the two products surpass the trading capacity of 30,000 tons in 10 months.

Yang Hongsen, the president of Hbot, is not satisfied with the figure. He pointed out that spot exchange capacity just reflects the trading platform is actually providing service to real economy. He said, "We strive to build a platform for easy buying and easy selling, with the develop of Hbot, the capacity must will be increase." Hbot has grown to be a spot exchange platform with a certain discourse power in the industry. It aims to be a finance providing service to the real economy and achieves success on trading model innovation.

According to the data, there are already hundreds of trading companies, textile and chemical fiber manufacturers operating on the platform. After all, more and more traders dispersed over the nation are now coming together in Hangzhou and the volume keeps increasing, all of which witness the fast growth of Hbot.

Makes delivery the guide, and serve entity enterprises

Hbot is an important strategy made by Xinhua News Agency to explore the platform economy. Under the supervision of relevant divisions, it strictly abides by the guideline of providing service to the real economy and promoting spot exchange. With the destiny of sustainable and healthy development, Hbot has received powerful support and close attention from the Party group of Xinhua News Agency, provincial Party committee of Zhejiang province and Zhejiang provincial governments.

In the PTA/MEG trading model design, Hbot makes sure that delivery is the guide so that the platform serves the real economy. Hbot finds out that in the PTA/MEG trading system, manufacturers and merchants need to track delivery of recent months to conduct in-depth research. So Hbot innovated a new model that displays the recent six months of trading, and enterprises can declare delivery every trading day. When the settlement day comes, delivery is compulsory. This trading model is closer to spot months when compared to models in other exchanges, and more convenient for industry customers to make deals. In the mean time, this model suppresses speculations so that price of goods is closer to spot goods. What's more, it reflects real supply and demand situations in the market that helps to improve the enthusiasm of traders.

Practicing merge of spot and futures trading, maximize the profit of spot trading

Hbot innovated the concept of "merge of spot and futures trading" since its establishment in order to enrich the multi-layer capital market system. HBOT initiated that PTA and MEG products join with the futures market, which is appreciated by futures exchanges. On 27th November, representatives from Dalian Commodity Exchange came to Hbot and stated that MEG spot trading model provided foundations for MEG futures market, which helps to merge spot and futures trading.

Spot traders are the ultimate beneficiaries when the spot and futures trading markets merges. A director from Jiangsu Changle Chemical Fiber Company said in an interview with The Futures Daily that Hbot's PTA market allows for continuous trading of dominant contracts, and that is complementary with the PTA futures markets. This complementation meets the demand of enterprises of recent month deliveries and attracts more industry customers.