RMB'S Inclusion In SDR Greatly Stimulates The Development Of Textile And Clothing Industry

RMB has entered SDR, which will greatly stimulate textile clothing Development of the industry.

On November 30, IMF announced that RMB would be included in the special drawing right (SDR) currency basket as the fifth currency except for the pound, euro, yen and dollar.

Zhang Shiyuan, the chief researcher of Southwest Securities, said that the entry of RMB into the basket means the export of Chinese currency. Just like China's accession to the WTO in 2001, it will usher in another round of golden development in China, and the Shanghai Stock Exchange will again stand at 5000 points in 2016. For the capital market, after joining SDR, RMB has become an international currency, which means that major institutions around the world have recognized China's economic development status. MSCI will also soon bring China's capital market into the framework of global emerging markets, which will trigger global medium - and long-term funds to enter China's capital market, boost the valuation of China's blue chip stocks, and correspondingly raise the index.

Yang Delong, chief strategic analyst of China Southern Fund, said that the short-term impact of "basket entry" on the RMB exchange rate is uncertain, but it is conducive to the strengthening of the RMB in the medium and long term, thus greatly improving the international status of the RMB. The signal of the success of the "basket entry" is of great significance, indicating that China's status as a major country has been recognized by the international community, which will greatly enhance the confidence of domestic and foreign investors, promote a new round of rise in A-shares, and help finance, real estate, the Belt and Road and other industries and sectors.

　 Benefiting five industries

　　 Textile clothing Industry: Xia Jun of Jinyuan Securities said that the RMB's entry into SDR will stimulate the performance growth of the textile and clothing industry. Relevant concept stocks include Shinur, Seven Wolves, Baoxiniao, Meibang Clothing, Luolai Home Textile, Fuanna, Lutai A, Toread, etc.

Steel industry: Zeng Jiesheng, an analyst of "My Steel" Research Center, said that RMB's entry into SDR will indirectly promote the downstream industries of steel, such as machinery and household appliances. If the export of products in these industries rises, the domestic steel market may be improved. Relevant concept stocks include Sangang Minguang, Benxi Steel Plate, Guangzhou Steel, Xining Special Steel, Bayi Steel, Shagang, Jiugang Hongxing, Daye Special Steel, Fushun Special Steel, Liugang, Lingang, etc.

Shipping industry: Some insiders said that the RMB's entry into SDR or the stimulation of the export of domestic textile industry and other industries will bring some benefits to container shipping, and even stimulate the demand for raw materials to drive the dry bulk transportation market. Relevant concept stocks include SST Tianheng, China Shipping Container Lines, China Shipping Phoenix, China Ocean Shipping, China Shipping Tanker, Ningbo Shipping, etc.

Chemical industry: Analysts believe that RMB's entry into SDR will increase the purchase cost of import enterprises, but it may be good for export-oriented chemical enterprises. Relevant concept stocks include Guofeng Plastics, Chlor Alkali Chemical, Wanwei High tech, Shandong Haihua, Huaxi Village, Juhua, Yinglite, Aoke, Xindu Chemical, Sanyou Chemical, Anada, Times New Material, Rongsheng Petrochemical, etc.

Automobile industry: It is expected that the entry of RMB into SDR will reduce the price attractiveness of imported automobiles, or inhibit the further expansion of the sales volume of imported automobiles. Relevant concept stocks include Zhejiang Furun, Jiangsu Sanyou, Lutai A, etc.

"Shanghai Hong Kong Stock Connect" welcomes important changes

The more important change comes from the Shanghai Hong Kong Stock Connect. Since one of the requirements for joining SDR is that RMB is convertible under the capital account, institutional investors will be able to trade Hong Kong stocks without limit. When the share price of A shares is higher than that of H shares, they will reduce their holdings of A shares and buy H shares at the same time; On the contrary, when the price of H shares is higher than that of A shares, institutional investors can also sell H shares and buy A shares at the same time. The arbitrage operation is almost risk-free, and investors just choose which market to buy stocks in.

As an ordinary investor, we should see the trend of A-share and H-share integration in the future. When buying stocks, we should compare the quotations in various markets and choose the market with the lowest price to buy, because this is more consistent with the value investment philosophy and the investment risk is relatively small.

In addition, shares The transaction commission also has a lower choice. At present, the minimum stock trading commission charged by mainland brokers is 0.025%. It is understood that Hong Kong brokers' commission is about 0.015%, that is, investors can save at least 1/10000 of trading commission by converting RMB into Hong Kong dollars and then buying A-shares through the Shanghai Stock Connect in Hong Kong market, which is a big temptation for short-term experts. If investors change their stocks once a day, they can save 2/10000 of the service fees every day, and save 5% of the transaction costs in 250 trading days a year, all of which are profits.

What is SDR

Special Drawing Right (SDR), also known as "Paper Gold", was first issued in 1970. It is a book asset distributed by the International Monetary Fund according to the shares subscribed by member countries, and can be used to repay the debts of the International Monetary Fund and make up the balance of payments deficit between member governments.

It is a right allocated by IMF to Member States to use funds. When a Member State has a balance of payments deficit, it can exchange foreign exchange with other Member States designated by IMF to repay the balance of payments deficit or IMF loans. It can also serve as an international reserve like gold and freely convertible currencies. Because it is a supplement to the original general drawing right of the International Monetary Fund, it is called special drawing right.

At the time of initial issuance, each unit was equal to 0.888 grams of gold, equivalent to the then US dollar. The purpose of issuing SDRs is to supplement gold and freely convertible currencies to maintain the stability of the foreign exchange market.

On November 30, 2015, the International Monetary Fund officially announced that RMB would join SDR (Special Drawing Right) on October 1, 2016.

The value of SDR on October 1, 2016 was divided into USD, EUR RMB The current exchange rate of a basket of currencies composed of five currencies, Japanese yen, British pound, is determined, accounting for 41.73%, 30.93%, 10.92%, 8.33% and 8.09% respectively.