RMB Depreciation Stimulates Performance Growth Of Spinning And Weaving Industry

Affected by the sharp reduction of the central parity price of RMB, the RMB exchange rate dropped to 495 basis points against the US dollar on the 2 day, and the largest decline in the exchange rate reform. The RMB depreciated significantly. This is undoubtedly a major positive for the export textile industry. Xinlong Holdings (000995), leading shares (600630), Fujian Nanfang (600483), and URI's shares (002083) and other textile stocks rose sharply on Tuesday.

Because of the continuous appreciation of RMB and the impact of the financial crisis, the export volume of export enterprises has continuously dropped, and the textile industry as a major exporter has been more seriously affected. The long-term appreciation trend of RMB has engulfed enterprises and has made great profits. Because the cost of raw materials, labor and other costs of textile enterprises are all denominated in Renminbi, while the export products are settled in US dollars, the change of export prices of enterprises is difficult to adapt to the accelerated pace of RMB appreciation, and a large number of profit margins have been lost in the foreign exchange settlement links, and even some enterprises often appear to be RMB negative profits after export refund.

RMB appreciation has forced Chinese clothing and textile enterprises to continuously increase their export quotations, resulting in the decline in export growth of their products. Meanwhile, some export markets have been lost under the competition of new textile exporting powers such as India and Pakistan.

Recently, the RMB has ended its three year appreciation trend and is going to depreciate. This will greatly stimulate the shrinking clothing and textile exports. It can be described as a background of a series of policies to stimulate the growth of the economy after a long drought and a series of recent policies to stimulate domestic demand and sharply reduce interest rates. The market is more willing to believe that the depreciation of the RMB is a long-term policy of the government to promote the export insurance growth. This is of great significance for restoring the confidence of export enterprises, especially textile enterprises,.

The textile industry is not only a large exporter of our country, but also because the textile industry is also a labor-intensive enterprise, which is related to the pfer of a large number of rural surplus labor force. Therefore, the textile industry's export decline has attracted the attention of all parties in the market. Therefore, not only the export tax rebate rate of the textile industry has been greatly improved in the early stage, but also the state has further reduced the tax burden on enterprises, alleviated the cost pressure and other policies to promote the healthy development of the textile industry.

In the current downturn of the textile industry, we can actively pform, adapt to the development of the situation and achieve the competitive position of the textile industry. Naturally, we can gain a favorable competitive position. The orient market (000301) is such a stock. The Eastern market (000301) is pforming to the "light assets, anti cyclical and high profit" business mode. The new business mode structure is basically formed. The company will promote the development of the textile paction to the electronic and network development, carry out the organic combination of the invisible market and the visible market, enhance the market format, grade and grade in an all-round way, carry out the development of the textile finishing industry, increase the environmental protection projects such as garbage incineration and power generation, and vigorously develop the circular economy.

Financial foreign investment will also be carried out, and the main investment projects will be the acquisition of oil field development rights, and support for the listing of financial enterprises.

The company will become the preferred textile market and modern service provider both at home and abroad. At the same time, it will lead profound changes in the industry circulation field, promote the upgrading of the textile industry and drive the overall development of the regional economy.

The rapid pformation of the company will undoubtedly make the company a leader in the textile industry.

In addition, the company is the first listed company to invest in venture capital.

A few years ago, the company invested 100 million yuan to set up "Tianjiao Technology Venture Capital Co., Ltd." as its largest shareholder.

The business scope of Tianjiao science and Technology Venture Capital Co., Ltd. mainly includes: industrial investment, hi-tech industry investment, capital management and venture investment, etc., so that the company has a real venture capital concept and has great potential for development.

Recently, venture capital concept stocks are extremely active, and venture capital concept is hot. The Oriental market (000301) is also worthy of attention.