RMB Devaluation Will Stimulate The Growth Of Textile And Apparel Industry

Last Friday, the RMB dropped to more than 500 basis points against the US dollar "a href=" http://www.91se91.com/news/index_q.asp "/a >, and the Shanghai Stock Index synchronized diving. Throughout the past few years, the depreciation and expectation of the RMB exchange rate often lead to a sharp fall in the A share index. The reason is that the large depreciation of the renminbi has led to a large number of hot money escaping, thus affecting the market liquidity and causing panic in the market. Industry analysts believe that the depreciation of the renminbi is a bad thing for the three industries, and has a positive effect on the five industries. < /p >
< p > Xu Jianping, director of investment consultancy of Wuhan Zhongshan Road Business Department of Shenyin and Wanguo, analyzed that since the appreciation of RMB, it has maintained an appreciation rate of almost 3% per year in recent years, causing a large number of foreign "hot money" to enter China's arbitrage, plus the high interest rate of RMB, which makes the central bank face greater pressure on RMB issuance. The pressure on the development of China's export oriented enterprises is increasing. Since December last year, the a href= "http://www.91se91.com/news/index_q.asp" > PMI < /a began to fall below 50. < /p >
< p > Xu Jianping believes that the depreciation of the RMB will benefit China's export oriented enterprises and export oriented enterprises. And blocking international arbitrage intervention to ease the excess pressure on the currency is conducive to financial stability, but not conducive to banks. The advantage lies in the reduction of hot money, the slowing down of real estate regulation and pressure, which is conducive to eliminating bubbles, but will make the capital flow to the investment field and benefit the stock market. < /p >
Zhang Weiguo, investment adviser of Wuhan Macao Road Sales Department, Galaxy P, believes that the depreciation of the RMB will bring adverse effects to the three industries. First, industries representing the local currency assets (real estate, finance and mining); two, industries with high foreign debt (aviation and trade); three, industries with high import volume (paper, petrochemical and iron and steel). < /p >
< p > Zhang Weiguo analysis shows that in the case of RMB depreciation, some industries will benefit from the growth of sales volume or benefit from the exchange earnings from the US dollar settlement: such as: a target= "_blank" href= "http://www.91se91.com/" > textile < /a > a target= "_blank" href= "_blank" > clothing > steel, chemical industry, Hang Yunye and automobile industry. < /p >
< p > specific performance is that the depreciation of RMB will stimulate the growth of textile and apparel industry performance; the depreciation of RMB will indirectly promote the downstream industries such as machinery and home appliances. If the export of these industries increases, or the domestic steel market will get better, the depreciation of RMB will increase the purchasing cost of import enterprises, but the export oriented chemical enterprises will be better. For the shipping industry, the depreciation of RMB will stimulate the domestic textile industry and other industries, which will bring certain benefits to container shipping, and even stimulate the demand for raw materials to drive the dry bulk shipping market; for the automotive industry, the depreciation of the RMB or the attractiveness of imported car prices will cause the sales of domestic cars to rise. < /p >
< p > < strong > related news: fast sell to HK $39 billion HK $J.Crew < /strong > /p >
< p > according to the financial news agency, the J.Crew holder of the large clothing chain store of the United States intends to sell the business to the parent company of the Japanese casual wear retailer UNIQLO (Fast Retailing) for about 5 billion US dollars (about HK $39 billion), but the negotiations are still in its early stage. J.Crew's holder of private equity fund TPG and related consortium, while considering J.Crew will be listed this year. HDR will be listed on the main board as an introduction this Wednesday. < /p >
< p > J.Crew, which now has 451 branches. Last year's profit before tax and interest was $370 million. Fast selling is now based on the development of the Asian market. As at the end of November last year, the number of branches in the United States was only 17. It is understood that Xunmei's business in the United States has not made any profit contribution, and it is also the only overseas market with no profit. As of November last year, there were 251 UNIQLO outlets in the mainland, 42 in Taiwan, and 22 in Hongkong and Macao. < /p >