RMB Depreciation, Textile Industry Resurgence
In recent years, China has been affected by the appreciation of the renminbi, the rising cost of labor and raw materials. Textile and garment industry Competitiveness in the world's main markets has been weakened, and the main market share in Europe and the United States has been declining. According to data from the China Textile Import and Export Chamber of Commerce, the export volume of China's textile and clothing decreased by 2.9% in the first half of this year, the first negative year-on-year growth in recent years. Customs General data also showed that in July 2015, China's textile and apparel exports were 27 billion 250 million US dollars, down 10.2% from the same period last year. Among them, textile exports amounted to 9 billion 510 million US dollars, down 5.9%, and clothing exports 17 billion 740 million US dollars, down 12.4%.
In August 11th, the central parity of RMB against the US dollar was 6.2298, a record low since April 25, 2013, a 1136 decline from the previous trading day, the largest single day decline in history. The downward adjustment of the RMB exchange rate against the US dollar means that the real estate and other heavy assets industries will be adjusted, and the resources may be redistributed to small and medium-sized enterprises and new industries, which will help optimize the economic structure. Specific to the impact of related industries, the depreciation of the RMB has a positive impact on export oriented industries such as textiles, instrumentation, communication computers, and so on, and will have a negative impact on the relatively large import assets, such as real estate, energy, aviation and other heavy assets industries.
Although overseas developed markets, especially the European market demand, are hard to improve in the short term, industry experience shows that the depreciation rate of RMB against the US dollar is 1%, and the sales profit margin of the textile and garment industry will increase by 2% to 6%. Moreover, the scale of China's textile and garment industry ranks first in the world, and the impact of exchange rate changes on the industry is huge. The sudden sharp depreciation of the RMB, for the average profit margin of less than 10% of the textile and garment industry companies, the role of self-evident performance boost.
Specific to A share related listed companies, Devaluation of RMB The good export business, especially the textile and clothing leading companies, which account for a relatively high proportion of US dollar settlement business, on the one hand, will contribute to the increase of the company's orders. On the other hand, most of the companies will settle in US dollars, and the exchange rate can also be obtained under the depreciation of the RMB. Among them, the export business of Huafang, URI, Lutai A, Luen Fat shares and other companies accounted for close to or more than 70%, and the exchange gains and losses had a great impact on the profits of enterprises, such as Huafu color spinning last year's exchange earnings reached 8 million 210 thousand yuan, accounting for 4.9% of profits.
However, there are also listed companies, though exchange rate The downward trend is clear about the industry, but most companies have already adopted a series of measures to hedge exchange rate risks, such as import hedging, US dollar financing and forward foreign exchange transactions. The positive impact on corporate performance should be analyzed in specific situations.
- Related reading

Hai Lan'S Home Revenue In The First Half Of This Year Is 7 Billion 930 Million Yuan, And The Crowd Raising Mode Has Stepped Up Its Expansion.
|- Equipment matching | There Is No Big Change In The Market Demand Of Textile Machinery, And The Trend Of Eliminating Old Machines Is Becoming A Trend.
- Internet Marketing | Xiamen Traditional Electricity Providers To Be Pformed Network Retail Sales Will Exceed 10 Billion
- Fashion shoes | 2014 New Women'S Shoes In The Fall Bring You The Fashion Trend.
- Zhejiang | Wenzhou Shoes And Clothes, Fashionable Flowers, Everywhere, Create Personalized Customization.
- Global Perspective | Under Armour Brand USA Market First Exceeds Adidas
- Colorful circles | 學韓國女星選包包 做最時尚的都市達人
- Company news | 阿里或啟動綠鞋機制 有望納入指標全球股指
- Fashion character | Zhang Yuqi, New York Street, Filming The Cool Sister.
- Recommended topics | Fashion Consumption Makes The Light Industry Like Shoes And Clothing Reappear In Thousands Of Ways.
- Exhibition topic | International Leather Exhibition Inspires Ideas For The Leather Industry's Pition Period
- Into The Baiyangdian (Rongcheng) International Fashion Culture Festival Media Briefing
- Analysis Of The Achievements Of Glass Fiber Industry In Shangyou County
- Don't Worry About Autumn Tiger! Classic Collocation Is More Cool.
- Fashion Experience Hall Can Only Be "Ctrl+C, +V"?
- Hsu Chi Can Learn To Wear Dating Clothes And Reduce His Age.
- 森女系化身甜美小蘿莉 輕松打造空靈女神
- Is Valentine'S Day Ready For Sweet Date?
- 超模米蘭達?可兒教你成為世界上最會穿的女人!
- Solve The 2 Major Management Pain Points Of Retail Outlets
- 盛夏和早秋完美切換!當紅博主超實用美搭