Tongbai

Zhengzhou Commodity Exchange (ZCE) has been actively involved in targeted poverty alleviation efforts in Tongbai County, Henan Province, since 2013. ZCE has invested significantly in Tongbai County, focusing on multiple sectors of the national economy including agriculture, energy, and chemicals, with 23 listed futures and 8 options, including peanuts, which are particularly relevant to Tongbai's local economy.

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Tongbai County, an important region for peanut cultivation, has benefitted from ZCE's innovative "insurance + futures" pilot programs, which have been instrumental since 2021. These programs merge insurance with peanut futures to provide comprehensive risk management solutions to the local peanut farmers, thereby securing their income against price fluctuations and natural disasters. In 2021, with the support of ZCE and supplemental financial contributions from provincial and county levels, a substantial economic safeguard was established, covering a large acreage of peanut farms and significantly boosting the income security and confidence of local agricultural producers.

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These initiatives are part of ZCE’s broader strategy to integrate futures market capabilities into efforts aimed at poverty reduction and economic development in rural areas. The continued investment and innovation in financial products tailored to local agricultural contexts like Tongbai exemplify ZCE's commitment to using capital market tools to drive rural economic vitality and stability. This approach not only helps in stabilizing the peanut industry in Tongbai but also plays a crucial role in the broader context of rural revitalization and sustainable economic development.

Figure 1: The distribution of Donations in Tongbai

The IFU Project, as indicated by its presence on the graph, is an active participant in philanthropic efforts. Central to its mission is the implementation of compensation programs aimed at providing financial assistance and support to targeted groups or initiatives. These compensation efforts form a critical part of the foundation’s strategy to alleviate hardship, promote development, and enhance the quality of life for individuals and communities in need.