China’s agricultural insurance in 1982 introduced. This is not only so that farmers can be circumvent the risk of production and, more importantly, to our country, including the establishment of cotton and other agricultural risk mechanisms.

In January 1985, ordered the contract system in place of monopoly for purchase and marketing system. This marks the monopoly for purchase and marketing system in all of our end, to a certain extent, the promotion of cotton production and circulation.

September 22, 1988, the State Council issued “on the stability of cotton prices,” which decided to buy cotton will be national unity in accordance with the provisions of the settlement price of cotton with.

In 1993 the State Council approved “on the reform of cotton circulation system”, with the idea 3 years operation of open cotton, the cotton market and cotton prices.

In 1996 the State Council decided to cotton prices from government pricing Zhidao Jia government be changed to allow floating up and down (4%), cotton and a fair system. November 6, the first of the National Cotton Council in order to convene Zhengzhou.

1997 National Cotton prices further to move closer to market prices by 1996 be changed to 4% of the floating floating 6%, cotton spinning business enterprise, regardless of the nature, scale were allowed to participate in the national cotton trade fair. From the beginning of the third, the National Cotton Trade Fair officially changed its name to the national cotton market and cotton trade from the majority of transactions are focused on the transition to the year round trade.

September 1, 1999 onwards, the cotton price, sales price by the market, the state will not be uniform pricing, textile companies can purchase and operation of the processing of cotton. October 20 to 21 in Beijing will auction the State cotton reserves. This is a national cotton reserves for the first time through the cotton market, it marks the beginning of the national cotton reserves in the past by the distribution of market allocation scheme.

In 2001, the work of the National Cotton At the meeting, Vice Premier Wen Jiabao on the cotton circulation system made specific comments: cotton to the implementation of a release (open to buy) and points (level agency separate from the operating reserve and separate), to strengthen the three ( Strengthen market management, quality management and macro-control).

May 9, 2002, 10, of the National Cotton Exchange for the success of cotton goods auction transactions. June 17, the National Cotton Exchange launched the first “Chinese cotton price index.”

April 14, 2003, the first regional Cotton Exchange – cotton trading market of Henan in central China, Zhengzhou in the formal listing of business test. September 28, the China Cotton Association was established in Beijing.

June 1, 2004, the China Securities Regulatory Commission approval, the official cotton futures in Zhengzhou Exchange. Cotton futures market is conducive to improving the domestic cotton market system, not only to buy cotton enterprises have more options, but also China’s cotton industry to strengthen the international voice.