Textile And Garment Benefits Rise And Reach A New Stage.

UBS believes that the medium-term depreciation of the renminbi is unlikely to happen, but the agency is also worried that the recent RMB exchange rate fluctuations will change the long-time expectations of RMB investors' unilateral appreciation.

However, the renminbi exchange rate Short term continuation of weakness will also bring volatility to the A share market.

In recent years, the RMB has continued to appreciate, and many domestic export oriented enterprises are under heavy pressure. In turn, the depreciation of the renminbi will naturally give these enterprises a chance to breathe.

In these export oriented enterprises, Textile and clothing Enterprises undoubtedly occupy a large proportion. For many textile and garment enterprises that are devoured by foreign exchange links, the depreciation of the renminbi will be one of the most direct means to stimulate their growth.

Yesterday, A shares of the textile and garment sector, which was stimulated by the short-term devaluation of the RMB, was agitated. Nearly 90 stocks rose in the sector. At the close, YOUNGOR, Pathfinder The stock trading of leading stock, Shenda group, Meyer and so on, Huafu color spinning, Jiaxin silk, Jihua Group, Jia Linjie and so on all rose by more than 3%, and the overall growth rate of the plate reached 3.96%, which is one of the strongest trends in the two cities yesterday.

According to the data of flush capital flows, the net inflow of textile and clothing sector yesterday was 1 billion 298 million yuan, second only to three sectors, such as computer application, real estate development and electrical equipment.

From the specific point of view, institutional funds for textile and clothing plate targets are also favored, such as Pathfinder and wedding bird. The public information on the day's transaction showed that the pathfinder was able to win the support of the four major institutions. The total purchase amount was 97 million yuan, accounting for 13% of the total turnover. There were two institutional seats bought by the wedding bird, and the purchase amount was 89 million yuan and 36 million yuan respectively, accounting for 34% of the total turnover of the stock.

Analysts believe that although the current external market downturn, the RMB short-term depreciation may not soon bring obvious incremental orders for textile and garment companies, but the export costs of related enterprises will still be significantly released, which is still good for the textile and garment sector.

Related links:

The easing of pressure from the major global central banks has increased the pressure on the renminbi to depreciate. Although the central bank raised the central parity price on Wednesday (January 28th), the spot exchange rate of the renminbi continued to fall sharply.

At noon that day, the spot exchange rate fell at 1.956%, closing to 2% of the exchange rate limit, refreshing the previous record. Offshore renminbi also fell sharply, and once fell to 6.2547. This is the third time the renminbi has fallen this week. On Tuesday, the onshore RMB touched 6.2578, or 1.95%.

Lu Zheng commissar, chief economist of Industrial Bank, believes that the current RMB effective exchange rate is not balanced, but has been overvalued. This is also the fundamental reason for the slow recovery of China's economy. If the overvaluation of the renminbi is corrected, that is, the depreciation of the exchange rate will bring the Chinese economy back to the growth rate of over 7.5%. He boldly expects that the biggest depreciation rate will be around 5% this year.