Quanzhou Shoe Enterprises March Into Russian Market

Nearly 200 springs enterprises have set up in Russia.

"High quality and low price is still the biggest advantage for Quanzhou products to enter the Russian market."

Mr. Lin, who is responsible for the exhibition at Quanzhou foreign service center, told reporters that from the perspective of Quanzhou enterprises' participation in Russia, shoes and clothing products are very popular locally.

Not long ago, at the 2010 Russian Federation of autumn light industry and equipment exhibition held at the all Russian Exhibition Center in Moscow, Jinjiang and Shishi's casual pants booth attracted a large number of Russian businessmen. Their fabrics, plates and workmanship were highly valued, and these are the strengths of Quanzhou footwear manufacturers.

Figures from the Quanzhou Municipal Foreign Trade and Economic Cooperation Bureau show that the value of Quanzhou's exports to Russia reached $149 million in the first half of October this year, an increase of 65.98% over the same period last year.

Through the joint establishment of import and export companies and the establishment of factories in Quanzhou, the trade between the Russian enterprises and the Russian market is further enhanced.

Anta, the world, XTEP, PEAK and other Quanzhou shoes brand's figure also began to appear more and more in Russia's large shopping malls.

"At present, nearly 200 Quanzhou enterprises have set up offices in Russia. In addition, there are nearly 500 enterprises that have dealings with Russia, and trade products have expanded from the original, shoes and caps, bags and so on to electrical appliances, stone, hardware, plumbing and so on."

Cai Yantian said.

Exchange rate risk and cost will be reduced.

For Quanzhou enterprises, how will China and Russia realize bilateral trade settlement with their own currencies? What kind of impact will they bring to bilateral trade? It is understood that Quanzhou enterprises are currently trading with Russian enterprises, mostly using US dollars to settle accounts, and both currencies need to be converted into US dollars first, which virtually increases the risk of paction costs and exchange rate changes.

"RMB will directly trade with rouble, and both sides will use their own currencies to trade settlement. Exchange rate risk and paction costs will also decrease, and bilateral investment and trade will also be more convenient."

Cai Yantian said.

It is understood that the RMB's paction to rouble is the seventh currency paction initiated by the interbank foreign exchange market. It is also the second emerging market country trading product launched after Malaysia's ringgit in August this year.

At this point, the currency that can be traded directly with the renminbi in the interbank market of China also includes

"The RMB to ruble paction is determined through the inquiry method to determine the middle price, on the one hand, it can enhance the autonomy of the two sides of the paction, and more importantly, it can get rid of the influence of the current US dollar exchange rate trend."

Insiders said.

It is understood that, considering the relatively large fluctuation in the price of emerging market currencies compared with major international currencies, the floating rate of RMB against ruble is 5%, higher than the 0.5% floating rate of RMB against the US dollar, and the floating rate of RMB against the euro, Japanese yen, Hong Kong dollar and Sterling exchange rate of 3%.

The key is whether the exchange rate is stable.

It is understood that from the current bilateral trade between China and Russia, although the demand for RMB and rouble pactions is not as large as that of the US dollar and rouble, liquidity and volatility will be relatively small.

"Because of the increasingly close trade between the two countries, many of China's resource products are imported from Russia, and many Russian supplies and small commodities are imported from China. Therefore, it is not only the demand of Chinese enterprises for rubles, but also the Russian enterprises' demand for Renminbi."

Xu Li, chairman of Quanzhou's export shoe business, told reporters.

At present, the ruble's listing in China has already begun. In December, the renminbi will also be traded in Russia.

"Direct trading of currencies in both places simplifies mutual settlement."

Xu Li told reporters that at present, Quanzhou enterprises not only exported Russian products, but also began to try to set up factories directly in the local area, and settled in Renminbi directly, which is obviously more convenient.

"However, for most of Quanzhou's enterprises, while enjoying this convenience, a more concerned question is whether the exchange rate of the two currencies can be maintained in a relatively stable range.

If the exchange rate of a party fluctuates greatly, it will be obviously unfavorable to the other side.

In addition, the RMB exchange rubles channel is also a concern for enterprises.

He said.

From Malaysia's ringgit as the first emerging market currency to be traded in the interbank foreign exchange market in China for 3 months, the exchange rate of RMB against the ringgit has been stable. "In fact, it has accumulated experience for the RMB's pactions with ruble." insiders say that, for the business of RMB and Ruble settlement, some domestic banks have already started experimenting. Fujian has become one of the 10 pilot areas of ICBC's ruble and ringgit counter clearing business. After the pilot branch business matures, it will gradually spread to the whole country.