Global Economic Weakness, Textile And Garment Sector Pressure Increasing

Yesterday, the Shanghai and Shenzhen stock markets were stimulated by both sides of the market to exceed 3%. Then, after some weight stocks were dragged down, the Shanghai and Shenzhen stock markets were all down.

At the close, the Shanghai Composite Index fell 2.71%, to 2017.32 points.

The total turnover of the two cities was about 74 billion 200 million yuan, which was enlarged compared with the previous trading day.

At the same time, yesterday's textile and garment industry showed a sharp drop in volume, the weaker characteristics are more obvious.

Yesterday, the textile and apparel industry index of shwan textile industry opened up and went down, and the final value of the textile and garment industry dropped sharply. The final drop was 3.56%, which fell at the forefront of the first tier industry index.

According to Wind information statistics, the turnover rate of textile and apparel industry yesterday was 1.71%, an increase of about 15% compared with Monday.

According to the weighted average method of A share market value, the overall decline of the textile and garment industry yesterday was 3.50%, and the three grade sub boards of wool spinning, cotton spinning, silk, printing and dyeing and clothing fell by 4.90%, 3.78%, 2.45%, 3.79% and 2.92% respectively.

In the textile and apparel industry, only 5 stocks, including Jinying shares, China Garments, Weixing shares, Xinmin technology, American Apparel and ST Tianhua, rose yesterday.

In general, woolen, printing and dyeing and cotton textile stocks have a greater overall decline, more obvious to the industry index, while the performance of a few brands of clothing and silk stocks is relatively low.

Under the pressure of continued appreciation of RMB, the export pressure of textile and garment industry is increasing.

Since the beginning of this year, the export growth rate of the textile and garment industry has continued to decline due to the decline in US demand and the weakening of the global economy.

According to the latest data released by the customs, China's textile and apparel exports totaled 136 billion 940 million yuan in 1-9 months in 2008, an increase of 8.12% over the same period last year, and the export growth rate dropped by 11.3% over the 1-8 months, falling for 8 consecutive months.

At the same time, the decline in garment exports is particularly obvious, which is also an important reason for the sharp decline in export growth in the whole industry.

Customs statistics also showed that garment export growth rate was 1.76% in 1-9 months, and the growth rate dropped by 21.24 percentage points year-on-year.

Insiders pointed out that China's textile and garment industry exports mainly from the United States and Europe, and as the US subprime mortgage crisis intensified and continued to penetrate into the real economy, the slowdown in major developed economies such as the US and Europe was inevitable.

Facing the continuous deterioration of consumption in the United States and slowing demand in Europe, the export situation of domestic textile and garment industry will be more severe. The profitability of textile and garment listed companies will face further pressure.

Some market participants pointed out that some textile and garment export tax rebate rates started in August will be good for the industry.

But considering the appreciation of RMB, the export of industry in the future is still not optimistic.

In addition to the pressure of export, the price drop of chemical fiber products has also led to a sharp decline in the efficiency of the chemical fiber industry.

In addition, in recent years, various raw materials, labor costs and capital costs have also increased the pressure on domestic textile and garment enterprises.

China economic information network data show that before August this year, the total revenue and profit of the above scale textile enterprises increased by 15.46% and 3.20% respectively, and the growth rate of the industry decreased significantly, and showed a continuous downward trend since the beginning of the year.

At the same time, affected by macroeconomic regulation and the expected decline in industry prosperity, from the end of 07, the growth rate of fixed asset investment in textile and garment industry also showed signs of decline.