[Canton Fair Express] Foreign Trade Enterprises Take The Initiative To Deal With Exchange Rate Acceleration.

Although there was a certain psychological expectation at the end of last year, since April this year, the RMB exchange rate has suddenly "worked" and "broke" frequently on the appreciation track. It has caused a great impact on China's foreign trade enterprises. "Unexpected" has become the common aspiration of most enterprises.

From the 109th session

Exchange rate changes fast, pressure on Enterprises

In April 29th, the exchange rate of RMB against the US dollar was 6.4990, and the "ease" went up 61 basis points, breaking through the 6.50 integer pass, which is only a microcosm of RMB's "clearance" since April.

From April 6th to 29, in the 19 trading days, the RMB appreciated against the US dollar by a total of 574 basis points, with a monthly gain of 0.88%.

"We think that this year will continue to appreciate, but the recent gains are still somewhat unexpected." Cao Xiaojian, deputy general manager of Jiangsu sainty (600287), whose annual export volume exceeds US $1 billion, said: "the most direct effect now is to let export enterprises feel uncertain. Many overseas buyers are hesitant because of the RMB exchange rate changes, and the pressure on exports is not small in the short term."

The Canton Fair, which has more than 24000 companies exhibiting, is regarded as barometer and weathervane of China's foreign trade.

A survey from the frontline shows that most enterprises understand and agree with the appreciation of RMB, but how to adapt to the increasingly frequent "changing period" of RMB exchange rate change or a big challenge.

Passive appreciation is better than active attack.

In the face of the sudden "acceleration" of the RMB exchange rate, some foreign trade enterprises say that because of the lack of bargaining power, they are often only a passive response.

Guo Weizhong, the six manager of Zhejiang Hui Ling foreign trade limited liability company, said that many small and medium-sized textile enterprises are more helpless to appreciate the renminbi. "Over 90% of the products that we export to the European and American markets are still in the middle and low end. Enterprises like us will take into account the factors such as appreciation of the Renminbi when negotiating with merchants, but the actual bargaining power is not strong enough. Once the change occurs, enterprises will be able to maintain capital preservation."

Some enterprises say that they are more "cling to their teeth".

Gao Bing theory, chairman of Zhejiang native animal products import and Export Group Co. Ltd., according to the recent change of exchange rate, the gross profit margin of enterprises will be reduced by 2 to 3 percentage points.

However, compared with passive revaluation, some foreign trade enterprises showed stronger adaptability through the "active attack" and the RMB exchange rate challenge under the condition of "frequent changes".

Han Xiaoying, the two deputy manager of the international business of Lu Tai textile Limited by Share Ltd, a famous company, said that since last year, the company has taken the initiative to increase the purchase amount of financial derivatives to offset the risk of exchange rate changes. On the other hand, it has invested more capital and technical force in developing new products, breaking through the saturated traditional market and seeking new business opportunities.

Exchange rate movements should avoid "one-way street".

Looking ahead to the market situation in the second half of this year, some enterprises believe that the situation of "sudden force" in the RMB exchange rate change is likely to continue. It may not even rule out the possibility of a new high in the near future. This is similar to the first half of 2008, that is, the RMB exchange rate changes once again entered the "one way up" channel, which further increased the operating pressure of the enterprises.

Li Keguo, general manager of Hubei Meyer import and export trade Co., Ltd., said that the current trend of RMB exchange rate has created a strong "one-way street" impression on the global market. From the manufacturing and trade field, many overseas buyers are expecting strong appreciation of the RMB's future appreciation, which is not only harmful to the development of foreign trade, but also a pressure on China's current efforts to curb inflation.

In the three phase of the Canton Fair, the Vice Minister of Commerce, Zijin Mountain, also mentioned the appreciation of the renminbi several times during the inspection of the trading enterprises.

In his view, RMB appreciation is a long-term challenge that enterprises must face and solve. Only by speeding up the construction of independent brands, enhancing enterprise's innovation ability, and accelerating the pace of industrial upgrading and pformation can it really be effective.