Some Textile And Garment Enterprises "Pformation" To Deal With RMB Appreciation

Mr. Chen, who is exporting handicrafts in Nanjing, has been depressed recently.

Over the past few years, the central parity of RMB against the US dollar has continued to refresh the new high since the reform, breaking through the 6.77, 6.76 and 6.74 levels, and the appreciation seems to be accelerating.

In September 15th, the central parity of RMB against the US dollar was 6.7250, up 128 basis points from the previous trading day.

For several days, it has hit a record high since the reform.

In fact, the biggest impact of the appreciation of the renminbi is a large number of export enterprises in Jiangsu province.

Which export enterprises in Jiangsu have the biggest impact? What should they do?

Surprisingly, in the course of the interview, a number of experts and insiders sent such advice: Jiangsu's foreign trade enterprises, which have long been struggling to cope with the appreciation of the renminbi, have reached the stage of pformation.

According to the survey results of 100 textile and garment enterprises in Jiangsu Province, the impact of RMB appreciation on these enterprises is obvious.

Jiangsu is a big province of foreign trade.

Since the reunification of the Jiangsu electric and mechanical industry,

First of all, the ability to deal with exchange rate risk diminished year by year.

In the past 2005~2008 years, the difference between the export cost of the 100 enterprises and the current RMB exchange rate against the US dollar decreased year by year, indicating that the ability to cope with the exchange rate risk is weakening with the emergence of the superposition effect of RMB appreciation.

The profit margins of textile and garment industries and the export of mechanical and electrical products are decreasing year by year.

Secondly, the change of RMB exchange rate is closely related to exports.

Statistics show that every appreciation of the real exchange rate by 1 percentage points, Jiangsu's electrical and mechanical exports fell by 0.63 percentage points.

Many people say that if there is no relevant support policy, the pace of RMB appreciation will bring greater downside risks to the export of textile and garment industry.

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Some enterprises began to "pform"

Since the reform of the exchange rate system, enterprises have gradually increased their awareness of avoiding exchange rate risks. Enterprises have taken various measures to deal with the appreciation of the renminbi.

From the point of view of the use of foreign exchange hedging tools, forward selling and foreign exchange financing has become the main foreign exchange hedging tool. 52% and 23% of the sample companies use these two tools to circumvent and prevent exchange rate risks. From the point of view of settlement, 31% and 10% of the sample companies adopt quick settlement, early repurchase or advance payment to cope with the adverse effects of RMB appreciation on exports.

From the point of view of production and operation, enterprises mainly pfer the exchange rate risk by improving product grades and technical content, and improving the pricing power of products.

Some enterprises develop their own unique export competitive advantages by developing differentiated products.

For example, Jiangsu Hengli Group has developed many new products around the direction of bright wire, such as its "bright silk" super bright polyester filament, which is recognized by China Textile Association as the leading product in the country, and is well received by the export market. Sheng Hong Group aims at the direction of "Microfiber" and fully develops "microfiber" products.

At present, the company's ultra-fine fiber production capacity ranks first in the world.

These enterprises increase the technological content and added value of products by increasing the development of new products, forming the characteristics of their own export products. The bargaining power of enterprises is strong, and they can pfer the pressure of cost increase to foreign customers, thus enhancing the affordability of export enterprises.