Benefit From The Depreciation Of The RMB Textile And Garment Sector Rapidly Pull Up

Textile and garment sector quickly pulled up in the 5 day. As of press release, China Textile shares and Sino submarine shares were trading down. The Eastern Jin Yu rose more than 8%, while the old Feng Xiang, Ai Dier and Xingye technology rose 5%.

Today, early today, the RMB on the onshore shore opened against the US dollar, and it fell by more than 1000 points during the day, breaking the 7 mark. At the same time, offshore RMB against the US dollar also fell below the 7 pass, with a minimum of 7.1057.

Some analysts say that the depreciation of the renminbi constitutes a great advantage for exports. Generally speaking, textile (RMB depreciation 1%, textile and garment industry sales profit margin increased by 2% to 6%), home appliances, overseas projects construction (overseas contracts are mostly denominated in US dollars, RMB denominated units), and overseas business accounts for more, will directly benefit from the depreciation of the RMB.

Garment and textile industry is one of the traditional export industries in China. In recent years, influenced by the appreciation of the RMB exchange rate, the rising cost of raw materials and the expansion of inventory, the competitiveness of the whole industry in the international market has been weakened, and the export of textile and clothing has declined year by year. This also makes the share price of textile stocks mostly at a relatively low level in the two cities, and the attractiveness of the whole textile industry has dropped sharply.