Export Of Chinese Textile And Garment Products Is Blocked (3)

Insiders estimate that European debt crisis The fall of the euro will have an impact on China's export textile enterprises and will begin to appear in about 2 months, because the current contract ordering period is usually 2-3 months, and once the price is fixed, it can not be amended. Nowadays, many export enterprises are preparing for possible shocks in the future.

The Great Wall securities strategist La Bo said that in theory, as the euro fell sharply against the renminbi, the export companies of the European Union would surely be subject to exchange losses. This year, however, the euro's decline in the renminbi was mainly due to the fact that the renminbi was pegged to the US dollar and the euro depreciated against the US dollar. When the euro is not a one-time devaluation and the renminbi appreciates slowly, Export enterprises There is time to reduce exchange risk effectively through hedging, increasing export prices or contracts.

In order to deal with the impact of exchange rate fluctuations on the company, export textile enterprises also have their own countermeasures. For example, Halliday is to avoid exchange rate fluctuations by means of long-term hedging.

Statistics show that Haili's main business includes polyester industrial filament, light box cloth, geotextile and so on. Its 2009 annual report shows that Export business The revenue was 85 million 224 thousand and 200 US dollars, accounting for nearly 60% of the revenue, while about 17.8% of the export business was settled in euros. To cope with the loss of foreign exchange settlement, the company promptly adjusted the proportion of settlement between the euro and the US dollar, and adopted trade financing and forward selling and foreign exchange to avoid the loss of exchange rate fluctuations. It is interesting that Haley also reduced the financial cost during the period by 74% as a result of a decrease in exchange losses.

According to Halliday insiders, in order to deal with the sharp depreciation of the euro exchange rate, the company mainly uses forward hedging, which means that after a certain level of exchange rate, the price will be fixed on a certain day to rebalance.

In addition, some export textile enterprises take the form of US dollar settlement to reduce exchange losses. At the same time, if the foreign exchange settlement is part of the euro, customers can make up for the enterprises in long-term cooperation. For example, Jiangsu's sainty, the main garment and textile export company, is trying to reduce the impact of the euro diving by adjusting its long-term quotations and customer's long-term complements with customers. Statistics show that Jiangsu exported 492 million dollars in 2009, down 24.36% compared to the same period last year. Exports to the EU amounted to US $193 million, accounting for 39% of exports and second leading to 20 percentage points in the US. In addition, the financial cost increased by 55% in 2009, mainly due to the decrease in exchange earnings.

Jiangsu Shun Tian secretaries said that the company quoted price is adjusted according to the expected exchange rate. If the exchange rate of this single foreign currency exceeds a certain level, the next quotation will be adjusted accordingly. At the same time, if the company and the customer settle in euros, the customer can reduce the company's related losses through other long-term complements, and ultimately achieve the relative balance of trade.

In addition to the above two points, there are also some textile and garment enterprises with relatively large scale and relatively strong bargaining power to adopt the bargaining method to deal with the fluctuation of exchange rate. Of course, the way to make up for the fluctuation of exchange rate by raising product prices is only for those enterprises that are large in scale and intimately related to their customers.