Devaluation Of The Renminbi Has Hurt Some Domestic Enterprises.

< p > RMB a href= "http://www.91se91.com/news/index_cj.asp" > exchange rate < /a > in the first quarter of 2014, it depreciated by 2.7% compared with the US dollar, reversing the general upward trend in the past years.

China's suppression of the value of the renminbi has caused severe criticism from the US.

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The depreciation of RMB P has penetrated into some business areas, including airlines and oil suppliers, resulting in an increase in capital and operating costs, which has greatly increased the value of foreign currency debt.

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The official price of "P" on Wednesday is at its lowest level in more than seven months.

For many companies, the recent change in the RMB exchange rate is a reverse blow. Many enterprises have gained ultra conventional foreign exchange earnings on the way of RMB appreciation.

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< p > analysts pointed out that a large number of foreign currency debt and high import costs, or overseas spending enterprises in this "a href=" http://www.91se91.com/news/index_cj.asp "exchange rate fluctuations < /a" is particularly serious.

This includes airlines, real estate developers and consumer products companies.

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"The reason why you buy dollars is that you need to buy some commodities that are priced in dollars, which are fuel and aircraft for airlines. For oil suppliers, they may be oil, they are priced in US dollars," said Xu Nan Xu, an analyst at Barclays research, P Patrick.

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< p > with the decline of the RMB exchange rate, companies with a higher a href= "http://www.91se91.com/news/index_cj.asp" and foreign currency debt less than /a will be forced to pay debts at a higher cost.

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< p > China Southern Airlines said late Tuesday that it expects a loss of 300 million yuan (48 million 200 thousand dollars) to 350 million yuan in the first quarter, reversing the net profit of 57 million yuan in the same period last year.

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"Unlike real commodity rivals, real estate developers' income is also calculated in Renminbi," P Morgan Stanley said in a recent report. In addition, most of them did not hedge overseas loans.

The bank predicts that the industry's borrowing will increase in 2014.

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< p > but analysts also believe that if the devaluation of the renminbi is at a level close to the present level, many Chinese industries will suffer from limited influence, and they all believe that the renminbi will not fall uncontrolled.

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