China's Textile Industry Is Benefited From The Expectation Of RMB Appreciation.

< p > it is understood that after a rapid appreciation in the two quarter, the RMB exchange rate against the US dollar for two consecutive weeks fell slightly. Market institutions believe that the State Council recently put forward "maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level" in the foreign trade support policy, which means that the appreciation of the renminbi is weaker than before. It may be favorable for the export oriented industries such as a href= "http://www.91se91.com/" target= "_blank" > strong > textile < / strong > /a > and the exchange rate "dividend" of aviation, paper and other industries may shrink. < /p >
The fluctuation of RMB exchange rate affects the listed companies through the import and export chain, and the expectation of RMB appreciation is weakened. The textile industry may feel more clearly. P China's textile < a href= "http://www.91se91.com/" target= "_blank" > strong > clothing < /strong > /a > enterprises are mainly SMEs, and are very sensitive to the RMB exchange rate. According to market participants, the profit rate of cotton textile, wool textile and garment industry decreased by 3.19%, 2.27% and 6.18%, respectively, for each appreciation of 1%. According to statistics from the General Administration of customs, China's textile exports amounted to $511.56 in the 1-6 months of 2013, an increase of 10.10% over the same period last year. In June, textile exports amounted to 92.25 US dollars, a decrease of 5.04% compared to the same period, and the textile industry was flat. < /p >
Less than P, the RMB exchange rate has dropped slightly in recent years, which has improved the situation of textile foreign trade enterprises. Analysts pointed out that the continuous appreciation of the renminbi has great impact on textile and other export enterprises. High level emphasis on exchange rate stability, which means that the appreciation of the renminbi may be weakened, is undoubtedly beneficial to enhance the competitiveness of the textile industry and improve the current situation of textile foreign trade downturn. < /p >
< p > Mo Ni research report said that the "certainty" risk of US interest rate and the downside risk of China's interest rate "uncertainty" will lead to narrowing the risk of Sino US interest spread. This also supports the judgement that the RMB will probably have a phased depreciation in the three quarter. Monita pointed out that because the Chinese economy is expected to stabilize in the second half of the year and asset prices limit the interest rate cut by the central bank, the depreciation rate of the RMB will be controlled. CIC securities also pointed out that the depreciation of the renminbi, the key to demand for exports is demand. If devaluation promotes exports, it is likely to cause chain reaction in the international arena, and export enterprises can not benefit from it at last. < /p >
In the past 8 years, the RMB has appreciated 34% against the US dollar in the past 34% years. Today, the appreciation of the renminbi is expected to weaken, some analysts said that these industries "good days" may gradually end, investors should pay attention to changes in the relevant sectors in the near future. Analysts believe that if the appreciation of the renminbi is devalued, it will be detrimental to the development of China's textile industry. First, exchange rate depreciation will increase its asset liability ratio and make it lose foreign exchange earnings; secondly, increase procurement costs and overseas costs. In addition, the increasing cost of textile raw materials has made domestic textile enterprises complain incessantly, and the depreciation of the renminbi will make the textile industry bear more pressure of cost growth. < /p >
< p > data show that the textile industry is also sensitive to the fluctuation of the RMB exchange rate. As far as cotton textile industry is concerned, part a href= "http://www.91se91.com/" target= "_blank" > strong > raw material < /strong > /a > relies on imports and keeps high dependence on foreign trade. If RMB depreciates, the real price of imported raw materials will increase, and the cost of repaying foreign debts of spinning enterprises will increase, which will also have a negative effect on upstream listed companies. < /p >
< p > in short, the continuous decline of the RMB exchange rate will lead to a revaluation of the value of assets denominated in Renminbi, and the financial industry, as the most concentrated sector of capital, may also be affected theoretically in the tide of RMB value change. Analysts pointed out that China's banking industry is basically domestic business. Most banks have little foreign currency position except bank of China. < /p >