December 2009, the three major rating agencies collectively reduced Greece sovereign ratings, officially opened the European debt crisis. Since then, the euro seems like the broken line kite, straight into the abyss. Even more shocking is that of Commerce 17 indicated that as of May 14, cumulative appreciation of RMB against the euro 14.5%. As China's most important export market, the Renminbi against the euro dollar will give exporters enormous cost pressures.
Saying that, led by a hair and body. A-share market in many dependent on EU export company, and the rapid euro for Renminbi depreciation to what these companies, they are waiting here or find another way out?, national business news reporter investigated.
The appreciation of the Renminbi against the euro 14% during the year
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 economy growth of only 1% ~ 1.5%. While the EU is China's largest export market, accounting for 16% of the trade size, Europe-loan crisis will have on the whole of China's exports.
Yao kin also said that as of May 14, cumulative appreciation of RMB against the euro, which will 14.5% 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%.
The price of the RMB exchange rate between the Central Bank, may 20, the Renminbi against the euro, La 1: 8.4291, years cumulative appreciation of 14%. Over the same period of the euro against the US dollar has depreciated year is nearly 10%.
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%. 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%, exports grow 30.4%. In the same period, the bilateral trade amounted to $ 1071.8 billion, up 25%. National business news reporters found in the statistics of 25 countries, EU export growth rate is only ranked No. 19.
The biggest threat is demand decline
Euros on the devaluation of the Yuan's crazy will have the export business of what companies? great wall securities strategies ' La Bo to national business news reporters that 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.
La Bo Siew go said, in fact for the exporter's biggest threat is not this round of euro depreciation will be the EU's future needs. To meet European loan crisis, the EU is offering a day of salvation plan, must be in the future continue to reduce the budget deficit in the Member States, this may well lead to the second half of the EU economy slowdown and decline in import demand. Even so, our enterprise or through channels to reduce domestic. In addition, since this year the euro against most currencies are devalued, exporters of relative competitiveness does not happen too much change.
Moves a hedging reduces losses
National business news reporter in the survey, in response to exchange rate fluctuations on the company, it was a little dubious of export-oriented enterprises. To sum up, mainly with two types of coping.
First, use the forward foreign exchange hedge, I'm afraid this is today's most popular and most effective in reducing exchange rate losses in a way. In this year's European debt crisis swept, indeed there are many companies have adopted this approach, including hailide (002206), Zhenhua heavy industry (600320).
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 close to 60% and the export business and 17.8% 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 financial expenses significantly reduced compared to 74%.
Hailide dongmi Office to the national business news said, 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. As companies and overseas customers are factory on the factory pattern, and hedging exchange rate change in the specific number will vary by plant. It is worth noting that, although the second half of the EU needs to reduce risk, but benefit from product competitiveness and cost advantage, the company in 2008 and 2009 of the European export has increased. Moreover, as the main export tires, industrial products such as sling is mandatory in Europe to replace the behaviour, it is the product for alternative low, also affected by economic factors.
Instead of € Zhenhua heavy industry subject to depreciation may be more obvious that the company is a port of the leading enterprises in the machinery industry, bulk cargo machinery and container crane as its two main traditional business. The company container crane in the domestic market and international market share is higher, far ahead of other competitors. According to the access to information, the company exports to the EU accounting for the proportion of its main business 24.68%, in all export areas than the second.
For the euro depreciated on company band
To influence, Zhenhua heavy dongmi Office who told reporters, our products exported to more than 70 percent of the products, parts and accessories will also need to purchase from abroad, the international trade with multiple US dollars and euro. As a result of exchange rate variations resulting exchange gains and losses directly impact the company's profit level. The staff also noted that in order to avoid the risk of foreign exchange Exchange, the company has been using foreign exchange hedging transactions, and other financial instruments. At the same time, the reporter from the access to information that Zhenhua heavy industry 2008 foreign exchange hedging transactions would bring 7.32 billion.Trick 2 $ settlement instead
In addition to hedging, geer acoustics (002241) and Jiangsu SAINTY (600287) and Qingdao kingking (002094) three companies also active in Europe to reduce foreign exchange loss of us $; at the same time as the euro foreign exchange-part, customers in the long-term cooperation of enterprises.
It is understood that main business is the electro-acoustic components of geer acoustic 2009 overseas revenue 7.5 billion, accounting for earnings ratio up to 67%. Its overseas customers including Samsung, HP, Cisco, etc., while in Europe the biggest customers for the mobile phone in one of the Giants Nokia.
The devaluation of the euro, geer acoustic dongmi do people think that the company did not simply business overseas to districts, but rather to customer. In fact, since the main settlement dollars, euro, the proportion of less than 10%, so the performance is affected by the euro depreciated less impact. To be sure, even if the RMB strong against the euro unilaterally, companies can also adjust the euro, US dollar and other foreign currency settlement gravity to reduce risk. Such an appreciation, enterprises can afford.
But another specializing in clothing, textiles export enterprise of Jiangsu Sainty, although no hedging, but still 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%. 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.
The Renminbi against the euro dollar impact on companies certainly have. Jiangsu SAINTY Dongmi Office who told reporters, "as part of the company in Europe is in US dollar, the euro on the foreign exchange devaluation is required after the various links are enterprises to share the pressure. It is worth noting that the company and the customer to check a single quote 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, as Asia's largest craft candle and its related products manufacturing enterprises, Qingdao kingking export business accounting for the proportion of main operation 67.3% while EU exports represent a high proportion. In order to avoid foreign-exchange risks brought about by the devaluation of the euro, the company will be the majority of exports to the EU's business are adjusting to the dollar, the company holds u.s. dollars in 2009 currency funds more 87.91% increase in 2008, the company brought in 2009 exchange gain 192.65 million.
According to the company's annual report said that in 2009, the company will be based on domestic and international market demand and supply situation, reasonable arrangement of foreign currency and Renminbi; through close cooperation with the bis, to export negotiation, forward exchange rate, adjusted debt structure, appropriate to increase foreign currency loans and other financial tools to control exchange rate risk.