Dongguan'S Hong Kong Dollar Has Been Closed Down.

Appreciation, the enterprises operating in Dongguan face a bigger business dilemma. When the exchange rate changes, the value of the renminbi is 8.2765 to 6.8230 yuan, and the RMB appreciation has exceeded 20%. The continued appreciation of the RMB has become the most negative factor affecting the operation of Dongguan's Hong Kong enterprises. Thirty years after the first Hong Kong enterprise settled in Dongguan and Humen thirty years ago, the "internal injury" of Hong Kong enterprises has been fully released by such factors as RMB appreciation, the new deal in processing trade, the "two taxes combination", the new labor law and the soaring cost. In 2008, it will be a watershed. It is believed that a large number of small and medium-sized enterprises will even withdraw from Dongguan. Picture: RMB continued

The Hongchen hotel in Tangxia Town, Dongguan, is the most popular entertainment place in town. Most of the investors here are Taiwanese investors and Hong Kong business owners who invest in Tangxia. The past bustling and flashing red stars did not last through the cold winter of Tangxia. Although they witnessed the prosperity of Tangxia, they also witnessed the reluctantly leaving Hong Kong and Taiwan, and hurriedly closed down this year.

Engaged in processing trade supporting services in Tangxia Town, Mr. Chen, who has spent more than 10 years in computer embroidery business, said that "red sun" is a symbol of Tangxia, witnessing the prosperity and prosperity of this city, and ultimately to decline.

The iconic hotel also went bankrupt in the history of the development of Hongchen. It was five years ago, the third economic town in Dongguan, the two five star hotels: the new metropolis and the Good View Sangem Hotel were opened in succession, and Hongchen, who had insufficient hardware condition, had been carrying out "resistance". In 2007, it had been renovated and renovated. However, the more severe challenge came from the deterioration of the operating environment. Many small and medium-sized Hong Kong funded enterprises were leaving because of the deterioration of the trade environment.

"From the decline of the red star, we can see that many Hong Kong and Taiwan processing and trading enterprises are struggling to survive in Dongguan today. Because the enterprises have not been upgraded and pformed, they have been eliminated by the five star hotels". However, Mr. Chen believes that the "Red Star" is a microcosm of the overall recession of Dongguan's processing trade enterprises.

Over the years, many large and medium sized Hongkong and Taiwan processing and trading enterprises have been struggling for a long time. In the first half of this year, almost no goods were contracted out and processed, and their embroidery factories were barely supporting. The workers had been disbanded quite a lot, leaving only a few emergency workers.

He lamented that many of the supporting businesses that also served the large processing trade manufacturers all went bankrupt. What kind of printing and dyeing and carton factories were closing a lot? Now that these big factories are receiving new orders, the manufacturers of supporting services are not sure where to go.

Indeed, the "cold current" has been particularly fierce this summer. Many enterprises in the processing trade chain of Tangxia city are dying out. The recession of processing trade has affected the survival of the three industries, such as hotels, restaurants and rentals, which are closely related to them, and red tide is one of them.

Star hotels have been spreading all over the world. This is the case in Tangxia, the third tier economy in Dongguan. In the other towns of Dongguan, the processing trade is also spreading. Dongguan's Qiaotou town, a toy processing industry, has gone back and forth several years ago.

As Luo Bin, deputy director of Dongguan economic and Trade Bureau, said, there are more than 1.5 processing trade enterprises in Dongguan. The output value of processing trade accounts for more than 80% of the total industrial output value of Dongguan. The development of processing trade enterprises directly determines the total economic volume of Dongguan, and the processing trade plays a decisive role in the economic development of Dongguan.

In view of the importance of processing trade in Dongguan's economic life, the rise and fall of service industry has a more typical significance.

With the flourishing development of processing trade in Dongguan, the hotel industry in Dongguan has developed rapidly at the alarming rate in the past ten years. Currently, there are 95 star rated hotels, including five star rated hotels and 15 star hotels. The five star hotels are second only to the Chinese cities in Beijing and Shanghai.

Unlike other cities in China, Traders Hotel is located in the center of the city, and many high star hotels in Dongguan are located in towns and townships. This is mainly due to the fact that Dongguan has become a major consumer group after the reform and opening up.

According to the Hongkong Federation of industry, 10% of the 60 thousand to 7 Hong Kong funded factories in the Pearl River Delta region will be discontinued this year.

Liu Zhanhao, vice chairman of the Hongkong Federation of industry, has said that this will be the highest proportion of Hong Kong enterprises in 20 years. He has analyzed that some of the Hong Kong businessmen will be permanently closed, while some will move to inland China and some will move out of China.

The Hongkong Federation of industry has conducted a survey of its 3600 manufacturing enterprises members in the past. It is a prediction of the future prospects in Shenzhen and the Pearl River Delta. The result shows that 33.8% enterprises estimate that some 10%-20% enterprises will be closed down due to cost pressure in the next two years. 30.6% enterprises are pessimistic, and 20%-30% enterprises will be closed down.

Over a thousand years of shoe closures, Dongguan economic and Trade Bureau told reporters that in traditional manufacturing industries, such as clothing, textiles, plastic products, electronic components, metal and non-metallic products, there was a large-scale withdrawal of enterprises.

These Hong Kong and Taiwan funded enterprises still rely on the "low cost, low profit" processing trade mode, always at the bottom of the price chain, and the profit is only between 5%-8%. The pressure on the continued appreciation of the RMB has reached their limit, and the withdrawal is inevitable.

Who made the "internal injury" of Dongguan's Hong Kong enterprises in full swing is the change of the RMB exchange rate. Jiang Ling, vice mayor of Dongguan, believes that the biggest impact on Dongguan enterprises is the exchange rate changes. The exchange rate of RMB from 8.3 to 6.8, the ability of Dongguan port enterprises to bear, especially the psychological endurance has reached the limit.

According to Dongguan's open statistics, there were 909 processing trade enterprises terminated by Dongguan last year, accounting for about 6% of the total business, involving about 1 billion US dollars in contractual investment.