Euro volatility RMB appreciation against the euro passive measures of self-help exports textile enterprises make themselves take

Hailide internal sources, in response to the sharp depreciation of the euro exchange rate, the main use of the forward foreign exchange hedge; Jiangsu SAINTY Dongmi Office sources, companies offer is based on the expected exchange rate adjustment

As the Renminbi appreciation against the euro, instead of passive closely related industries began to be market interest. Particularly affected by financial crisis, has not yet been recovered their strength in exports textile enterprises make themselves take, I'm afraid will United States financial crisis once again under European debt crisis.

According to the price of the RMB exchange rate between the Central Bank, May 24, the Renminbi against the euro, La 1: 8.5404, years cumulative appreciation 14.5 per cent. Over the same period of the euro against the US dollar has depreciated years nearly 10 per cent.

The appreciation of the Renminbi against the euro passive

Near trillion assistance program, temporarily curbed the European sovereign debt crisis in the communicable, however, the market for the euro exchange rate of rebound still holds. This year, the euro against the US dollar has declined by nearly 14%. Since $ RMB essentially focused, killing the appreciation of the RMB passive. Department of Commerce press spokesman Yao maintains that at the beginning of this year to 14 may, the Renminbi appreciation against the euro has accumulated 14.5%.

17 may, the Department of Commerce's public is Europe loan crisis impact on Chinese exports expressed concerns, including the appreciation of the Renminbi against the euro. According to the Department of Commerce press spokesman, said Yao Jian in the European economy as a whole will be affected by the debt crisis hit in Greece, it is expected that this year the EU economic growth is only 1% ~ 1.5 percent. While the EU is China's largest export market, which accounted for 16 per cent of trade in scale, EU loan crisis will have on the whole of China's exports.

RMB against the euro over the last five months of appreciation, "will give China's exporters to enormous cost pressures on trade policy adjustments. "The Commerce Department spokesman Yao Kin hung.

Yao kin indicated that as of May 14, cumulative appreciation of RMB against the euro, which will 14.5 per cent to Chinese exporters enormous cost pressures, are also on the impact of trade policy. Data show that the first four months of this year, the EU is China's largest trading partner, the EU bilateral trade worth 1377.7 billion, an increase of 34.6 per cent.

According to customs statistics, the first four months of this year, China's imports and exports worth $ 8559.9 million, of which exports 4360.5 billion, an increase of 29.2 per cent. In the main trading partners in bilateral trade, 1 ~ April the EU is China's largest trading partner, the EU bilateral trade amounted to $ 1377.7 billion, up 34.6 per cent export growth 30.4 per cent. In the same period, the bilateral trade amounted to $ 1071.8 billion, up 25 per cent. In the statistics of 25 countries, EU export growth rate is only ranked No. 19.

However, some scholars on the appreciation of the renminbi is not too worried. The Chinese Academy of social sciences, Institute of world economics and politics Division Director, international trade, European Songhong think has not reached the debt crisis affect the real economy. It is different with the financial crisis, financial crisis is the result of the downturn, it is now essential that the debt crisis is in stimulating economic growth in the influence of the problem, much smaller, even if they have an impact on the real economy, and also take a long time.

Overall, the appreciation of the Renminbi first will affect China's exports, however, a moderate amount of appreciation, not unbearable. Haitong securities macroeconomic Chief Analyst believes that the current situation of export enterprises, may be the biggest problem is the labour shortages caused by the increase in costs and inadequate numbers, instead of order issue before you worry about. At this point, the appreciation of the RMB's small, it may be more beneficial.

Export the final response to exchange rate fluctuations textile enterprises make themselves take

European sovereign debt crisis for China's impact would be more serious. Dean of the Department of Commerce, the founding of the Fok is expected in May and June, and even entire third quarter performance would be more clear, I'm European export growth rate may be reduced by 6% to 7%.

Obviously, in this time of crisis, China's textile enterprises make themselves take exit will once again face the United States from Europe.

According to the Department of Commerce, the latest data show that in 2009, the EU 27 countries imported Chinese textile and raw materials of the total amount while year-over-year decline of 6.2 per cent, but still reached 428.32 billion, China has become the EU's 27 countries imported textile products and raw materials of the largest countries of origin, since the Chinese imports of textile and raw materials for the EU all amount in the amount of imported commodities 41.1%. Data show that in recent years, China's textile and clothing exports to Europe's share continued to remain at around 20 per cent of the total.

Trade evaluation, Europe loan crisis caused decrease of euros, will be on China's export certain impact of textile enterprises and are about 2 months after the beginning, as the current contract order cycle is generally 2 to 3 months and once prices decided cannot be modified. Nowadays, many export enterprises begin to impact the future possible.

Great Wall securities strategies ' La Bo said, in theory, as the euro on the drastic decline in exports to the EU listed companies will be affected by exchange rate losses. But this year the euro against the RMB lower mainly because of the RMB eye dollar and the euro against the dollar. The euro is not a one-time devaluation, the appreciation of the Renminbi against its slow, export-oriented enterprises have time through hedging, improve export price in the contract or to reduce the exchange rate risk.

In response to exchange rate fluctuations on the company's impact on exports of textile enterprises also have their own countermeasures. For example hailide (002206) is, by virtue of the use of forward foreign exchange hedging methods to avoid fluctuations in exchange rates.

Data show that hailide main business including polyester industrial yarn, light boxes cloth, geotextiles, etc. Its 2009 annual report shows, the export business revenue accounted for 8522.42 million, operating income ratio of nearly 60 per cent, while the export business and 17.8 percent to euro. In response to the euro foreign exchange losses, the company adjusted the euro and US dollar

Settlement business scale, while taking trade financing, export financing, avoiding exchange rate volatility losses. It is interesting to note that hailide also exchange loss reduced to the period of the financial costs 74 per cent year-over-year decline substantially.

According to hailide internal sources, in response to the sharp depreciation of the euro exchange rate, the main use of the forward foreign exchange hedge, namely exchange rate exceeds a certain level, the price will lock the level again some day.

In addition, some export textile enterprises to take us dollars to reduce foreign exchange loss; at the same time, if the euro foreign exchange-part, customers in the long-term cooperation of enterprises. For example, specializing in clothing, textiles export enterprise of Jiangsu Sainty, long-term adjustment with customers as well as long-term customer quotation up to try to reduce the impact of the euro and diving. Data show that Jiangsu SAINTY 2009 export 4.92 billion, an decrease 24.36 per cent. Which the EU exports 1.93 billion, accounting for 39% of the export ratio, ahead of second place in the United States nearly 20 percentage points. In addition, the 2009 finance charges an increase of 55%, mainly due to exchange rate gains.

Jiangsu SAINTY Dongmi Office sources, companies offer is based on the expected exchange rate adjustments, such as the single currency fluctuations over a certain level, a single quote will be adjusted accordingly. At the same time, if the company and the customer are settled in euros, customers can complement through other long-term to reduce company related losses and ultimately achieve the relative balance of trade.

In addition to the above two points, but also some larger, bargaining is relatively strong textile enterprises make themselves take you take to respond to price fluctuations. Of course, this means improved product prices to compensate for fluctuations in ways only those enterprise scale, at the same time there is a close relationship with the customer's enterprise can use.