The Impact Of Tight Monetary Policy On Export Shoe Leather Enterprises In Fujian

The implementation of tight monetary policy will inevitably affect corporate finance and production and operation.

Fujian is a major export province in China, and export enterprises play an important role in the economic development of the whole province. In 2007, the proportion of the export volume of the province in the province accounted for more than 40% of GDP.

The impact of tight monetary policy on export enterprises is representative in Fujian.

From the end of 2007, at the end of the year, the central economic work conference put forward the implementation of a prudent fiscal policy and a tight monetary policy in 2008. China's ten years of prudent monetary policy has been tightened.

From the analysis of the first half of this year, under the tight monetary policy environment, the main impact of Fujian's export enterprises is: the cost and difficulty of raising funds are increasing.

First, the cost of financing has increased significantly.

Since 2007, the central bank has raised the deposit reserve ratio and interest rate several times. The discount rate of bills in some banks in Fujian has increased from 3.8% in the first quarter of 2007 to 7% in the first quarter of 2008.

Two, the threshold for raising loans is more difficult.

Three, the uncertainty of loans is increasing and the scale is limited.

Since the beginning of this year, the central bank has raised the deposit reserve ratio for the five time. After the increase, the deposit reserve ratio of the deposit financial institutions reached a historical high of 17.5%, and the credit scale was further tightened.

In order to ensure the smooth turnover of capital needed for production and operation, enterprises have to increase the proportion of their own funds retained. At present, the retained liquidity of enterprises has increased from several million yuan to tens of millions of yuan, which has increased by more than 10 times. It not only improves the cost of loans, but also increases the security risks in the use of funds.

The uncertainty of enterprises' expectations for future production and development is enhanced.

In the environment of tight monetary policy, enterprises must consider the pressure of funds and market pressure in production, and the scale and process of the expansion of reproduction will inevitably be affected.

Different types of export enterprises are affected differently.

For export enterprises investing in Fujian, which are both processing trade and overseas famous companies, they can turn to raise funds from overseas when they are in production or using their own funds or when domestic financing is tight.

For enterprises that need financing in production and operation, the factors such as the tightening of money and appreciation of the renminbi, the adjustment of export tax rebate policy, and the increase in labor costs affect the export of enterprises, which makes the profit margins of enterprises further reduced and exports more difficult, especially for small and medium-sized enterprises.

Affected by this, the export growth of Fujian has accelerated since the beginning of this year, while the growth rate of general trade exports has slowed down, and the export growth of foreign-funded enterprises has increased, while the export growth rate of state-owned enterprises and private enterprises has dropped.

From 1 to May, the export volume of processing trade increased by 33%, compared with the 1.7% increase in the same period last year, and the growth rate of general trade exports increased by 20.2% over the same period last year, an increase of 9.3 percentage points over the same period last year.

Over the same period, the export growth of foreign-invested enterprises in the province increased from 12.6% in the same period last year to 25.9%, an increase higher than the average export level of the province, while the export of state-owned enterprises and private enterprises increased by 9.3% and 29.4%, respectively, 5.9 and 1 percentage points lower than the same period last year.

Different industries have different degrees of influence.

Analysis of the increase in the delivery value of different industries in Fujian from January 2008 to June shows that the export delivery value of pportation equipment manufacturing industry and communications equipment, computers and its electronic equipment manufacturing industry has increased significantly over the same period last year, while the export delivery value of industries such as agricultural and non-staple food manufacturing, textile, leather, feather and down products and textile, clothing and footwear manufacturing industries has increased in varying degrees compared with the same period last year.

This shows that the macroeconomic regulation and control policies adopted by the state to promote the pformation of the growth mode of foreign trade have achieved initial success. The export of electromechanical products and hi-tech products has increased rapidly, while the traditional export products are affected by various policy factors, and the export speed has obviously slowed down.

Under the tight monetary policy, how to promote the sound and rapid development of export enterprises in the face of changes in external development environment, enterprises should survive in change, adjust the national policy as a good opportunity to promote the pformation of enterprises, change the mode of foreign trade growth, and enhance the risk resistance of enterprises.

Enterprises should strengthen independent innovation, strengthen internal management and improve market competitiveness.

1. accelerate the establishment of independent brand.

In order to achieve sustainable development and enhance international competitiveness, export enterprises must change their concepts, focus on their own brand building, vigorously promote joint production, education and research with enterprises as the main body, promote scientific and technological innovation and achievements pformation, promote product mix adjustment, increase energy saving, environment-friendly products and high value-added products development; strengthen independent innovation, improve their own R & D capability, increase the added value and technological content of products, speed up brand building, thereby enhancing the bargaining power of products and enhancing their competitiveness.

2., strengthen internal management and solve the pressure of cost rising.

In the face of the sharp rise in raw material energy prices and the increase in labor costs, enterprises should take effective measures to improve technology and labor productivity, and use the opportunity of national policy adjustment to pform the extensive growth mode of high input and high consumption in the past.

3., broaden the financing channels and improve the ability to use financial instruments.

In the tight monetary policy environment, the export of small and medium sized enterprises is unfavorable for financing. Therefore, small and medium-sized export enterprises should actively seek new financing models suitable for their own development: first, actively develop endogenous financing; two, seek leasing financing; three, work hard with large companies to become their subsidiaries or become their long-term partners.

With the acceleration of RMB appreciation, the exchange loss caused by exchange rate risk to enterprises is becoming larger and larger. Export enterprises should pay more attention to the use of financial instruments and insurance tools.

Enterprises can avoid risks by choosing export credit insurance, and they can also avoid risks brought by RMB appreciation by means of cooperation with banks, such as changing settlement currency, locking exchange rate and trade financing.

At the same time, the government and relevant departments should strengthen coordination, form a joint effort, establish and improve the support system to promote the development of export enterprises, and create a favorable external development environment for enterprises.

1., establish a banking trade cooperation mechanism and build a platform for cooperation between banks and trade.

At present, it is necessary to coordinate the financing of export enterprises as an important measure to promote Fujian's export development and strengthen cooperation in banking and trade.

The export of credit funds for export enterprises will guide the commercial banks to adjust their credit structure, and use the credit lines of high-risk industries that the state calls for pressure to support the development of export enterprises, especially small and medium-sized export enterprises with potential for development, alleviate the financial strain of enterprises, promote the bank's active efforts to win the credit limit of the head office, accelerate the innovation of financial products, continue to expand the business of export tax rebate mortgage loan business, export credit insurance and insurance policy financing, expand the discount of commercial acceptance bills of export enterprises, promote the pilot exploration of the pledge loan business of export agricultural products record base, expand the way for enterprises to raise funds; moreover, in the context of the rapid development of stock market, bond market and financial trust market, more qualified enterprises can be promoted to raise funds from stock market and bond market. Coordinate with the financial sector

2., increase the special support for superior industries and leading enterprises.

At present, we should take advantage of the favorable opportunity for national policy adjustment to establish a differentiated and supportive trade policy system, and focus on fostering a number of industries and leading enterprises with better prospects for development to expand exports. For example, the export of Electromechanical, photovoltaic, shipbuilding, ceramics, automobiles and parts, loaders and other industries with good momentum of development and potential development in Fujian, we can implement targeted support policies to make Fujian's superior industries and leading enterprises bigger and stronger, and promote structural adjustment of export products in the whole province, and enhance the stamina of sustainable development of exports.

3., increase financial support and actively promote the pformation and upgrading of enterprises.

First, we should study the discount policy for trade loans.

In order to reduce the burden of enterprises, we should appropriately increase the budget of special funds for the development of foreign trade and economic development at the provincial level when the loan interest rate is high and the fees are high.

The two is to give tax relief.

Tax concessions should be given to enterprises and new product R & D enterprises that are in line with industrial policy orientation.

Enterprises engaged in processing trade prohibition and restricted products should also be guided and urged to pform and upgrade as soon as possible.

Three, we should actively provide credit support for small and medium-sized export enterprises, such as continuing to encourage and vigorously develop direct financing channels for enterprises, improve the current situation of insufficient capital sources of SMEs, promote innovation of guarantee methods, enhance the financing guarantee ability of guarantee institutions, guide and regulate the lending market among the people, attract private funds to invest in SMEs, provide more abundant financing channels, and set up risk compensation funds for SME loans.

3., broaden the financing channels and improve the ability to use financial instruments.

In the tight monetary policy environment, the export of small and medium sized enterprises is unfavorable for financing. Therefore, small and medium-sized export enterprises should actively seek new financing models suitable for their own development: first, actively develop endogenous financing; two, seek leasing financing; three, work hard with large companies to become their subsidiaries or become their long-term partners.

With the acceleration of RMB appreciation, the exchange loss caused by exchange rate risk to enterprises is becoming larger and larger. Export enterprises should pay more attention to the use of financial instruments and insurance tools.

Enterprises can avoid risks by choosing export credit insurance, and they can also avoid risks brought by RMB appreciation by means of cooperation with banks, such as changing settlement currency, locking exchange rate and trade financing.

At the same time, the government and relevant departments should strengthen coordination, form a joint effort, establish and improve the support system to promote the development of export enterprises, and create a favorable external development environment for enterprises.

1., establish a banking trade cooperation mechanism and build a platform for cooperation between banks and trade.

At present, it is necessary to coordinate the financing of export enterprises as an important measure to promote Fujian's export development and strengthen cooperation in banking and trade.

The export of credit funds for export enterprises will guide the commercial banks to adjust their credit structure, and use the credit lines of high-risk industries that the state calls for pressure to support the development of export enterprises, especially small and medium-sized export enterprises with potential for development, alleviate the financial strain of enterprises, promote the bank's active efforts to win the credit limit of the head office, accelerate the innovation of financial products, continue to expand the business of export tax rebate mortgage loan business, export credit insurance and insurance policy financing, expand the discount of commercial acceptance bills of export enterprises, promote the pilot exploration of the pledge loan business of export agricultural products record base, expand the way for enterprises to raise funds; moreover, in the context of the rapid development of stock market, bond market and financial trust market, more qualified enterprises can be promoted to raise funds from stock market and bond market. Coordinate with the financial sector

2., increase the special support for superior industries and leading enterprises.

At present, we should take advantage of the favorable opportunity for national policy adjustment to establish a differentiated and supportive trade policy system, and focus on fostering a number of industries and leading enterprises with better prospects for development to expand exports. For example, the export of Electromechanical, photovoltaic, shipbuilding, ceramics, automobiles and parts, loaders and other industries with good momentum of development and potential development in Fujian, we can implement targeted support policies to make Fujian's superior industries and leading enterprises bigger and stronger, and promote structural adjustment of export products in the whole province, and enhance the stamina of sustainable development of exports.

3., increase financial support and actively promote the pformation and upgrading of enterprises.

First, we should study the discount policy for trade loans.

In order to reduce the burden of enterprises, we should appropriately increase the budget of special funds for the development of foreign trade and economic development at the provincial level when the loan interest rate is high and the fees are high.

The two is to give tax relief.

Tax concessions should be given to enterprises and new product R & D enterprises that are in line with industrial policy orientation.

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