China Supports COVID-19 Prevention Through Gift Option Trading of Masks and More

[Asia Economy Beijing=Special Correspondent Park Sun-mi] Medical masks, gloves, and protective clothing used for COVID-19 prevention have appeared as futures options in the Chinese financial market, the China Global Times reported on the 4th.

The China Futures Association (CFA) stated in a press release the day before that "making medical masks and other COVID-19 prevention supplies new option trading targets is intended to help manufacturers of prevention products continue producing steadily despite the price fluctuation risks of raw materials during the COVID-19 outbreak."

The association explained, "For example, the price of polypropylene nonwoven fabric, essential for mask production, has surged due to a sharp increase in demand, and 'mask options' will effectively help manufacturers hedge against raw material price volatility."

The newspaper cited the case of Shanghai-based financial company CCB Futures, reporting that the company provided call options guaranteeing the costs involved in producing 45 million disposable medical masks to the Dow Group, which produces mask raw materials in Shandong Province.

Meanwhile, it is estimated that 85 futures trading institutions in China have contributed to COVID-19 prevention efforts through various methods, with an effect valued at approximately 37.15 million yuan.

This content was produced with the assistance of AI translation services.