Export Shoe Enterprises For Profit, Overseas Insurance

Abroad

In fact, in recent years, the financial strength of overseas financial institutions in mainland China has been markedly strengthened.

"This is our current circumvention.

Mr. Li's so-called exchange rate avoidance method is to hedge foreign exchange futures, and he is just a supervisor of enterprise funds, and the real trader has another person.

It's like a game of sword walking.

"This is a special period.

Lost profits

Mr. Li's group is a manufacturing company in the Yangtze River Delta. The total annual orders from European and American countries are at least $100 million.

From the next order to delivery, the time limit is basically three months.

In the fourth week of June, the business capital of Mr. Li began to enter the foreign exchange futures market.

"We do not operate frequently, just to hedge."

Because in the previous week, the depreciation of the US dollar began to show, and the rise of non US currencies increased.

Ordinary investors face greater uncertainty in operation, and how foreign trade enterprises should cope with the complex situation in the foreign exchange market is also a big problem.

The strength of the US dollar has been considerably weakened. The export areas of Mr. Li's enterprises are mostly concentrated in Europe and the United States. Because the European debt crisis is cloudy, the market is still doubtful about the euro.

And the renminbi seems to have another strong start.

In fact, before that, friends have suggested that they should do some foreign exchange futures.

Indeed, the fluctuation of exchange rate has seriously affected the export of enterprises, and profits have been squeezed by about 2%.

Mr. Li's enterprise is a low voltage electrical appliance. Because of the patent issue involving the country or region of the order, various expenses have already squeezed profits relatively slightly.

"If we don't do anything else, the overseas order business will be in a state of deficit."

Mr. Li said, "at that time, the board of directors specifically held a meeting to coordinate this matter."

In fact, financial executives like Mr. Li are usually one of the public relations groups of various types of private equity or financial institutions such as brokerage firms.

Under the recommendation of a deputy general of Futures Company, Mr. Li met with a person in charge of Ying Huang finance in Hongkong.

The reporter contacted a broker claiming to be Goldman Sachs through the Internet.

It is said that the current account opening procedure is very convenient. When an enterprise opens an account, it can provide relevant business registration certificates.

However, due to the fact that no foreign exchange futures business is open in China, customer information must be sent to overseas and overseas accounts.

After data audit, customers can operate through the network.

"The process of opening accounts is the same as foreign exchange speculation."

The agent of "Goldman Sachs" told reporters.

Moreover, there are no minimum quotas for foreign exchange futures. "1000 or 10 thousand can enter the market."

Foreign exchange futures have several leverage points, such as 1:20,1:200 and 1:400.

Mr. Li chose the lowest one.

Exchange rate overtakes market risk

"There have been several cases in this area since the second half of the year, all of which are illegal operations by brokerage firms, and then take away customers' funds," a Shanghai public security policeman told reporters. Because it can not be publicizing openly, this has virtually loopholes for some ulterior motives brokers. Financial security and legal risks should be paid attention to.

Although legal risk is latent in this field, there seems to be strong demand for domestic enterprises.

According to the press survey, a garment manufacturer and a footwear accessories company in Jiangsu and Zhejiang provinces have successfully opened accounts.

Moreover, I intend to start the operation of the recent accounts.

"We basically have to take one more account and lose one."

A shoe maker sighs, "is the company going to run? It's a good way to survive this turbulent period."

They are now stare at the exchange rate market, especially in the afternoon of October 10th, and the spot exchange rate of US dollar against RMB suddenly increased to 6.6912.

"According to this momentum, the order I received 1 months ago has now been lost."

The company also revealed why he chose futures Forex.

For example, he also considered choosing foreign exchange swaps to avoid such exchange rate risks, but banks charge about 1%-3%.

The number of overseas companies is much higher, and their commission is between 1/10000 and three.

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China's foreign exchange derivatives are still the same as those before July 2008, but there are only two long-term and currency swaps.

Although the central bank has said many times that regulators will improve existing foreign exchange derivatives trading tools, it will further study the timely introduction of other foreign exchange derivatives instruments, but there is no substantial result.

However, under special circumstances, this demand is generally rising.

In April this year, the main foreign exchange market in China's foreign exchange market, foreign exchange swap volume reached a record high of $53 billion 500 million, a rise of 26.5%.

In the same month, China's exports continued to decline for the sixth consecutive month.

It shows that financial institutions and economic entities have strong demand for foreign exchange hedging and hedging.

In fact, these enterprises choose foreign exchange derivatives abroad, and the way out of capital is relatively gray.

Take Mr. Li's operation as an example.

When his company account is opened, he will submit an application for related accounts to the overseas brokerage firm.

For example, the futures account he operates is a group company, and the 5 subsidiaries of the group are set up as related accounts.

If the exit of the US $100 million fund is taken as an example, in order to avoid the restriction on the exit quota of the funds set up by the state regulatory department, he will pfer the funds from the 5 subsidiary accounts of the company to the overseas futures account in batches.

Moreover, there is another way to make money come and go more convenient.

Mr. Li further revealed that if the group has a subsidiary company in Hongkong, it can submit relevant supporting materials to the regulatory authorities, and then the funds can get in and out more freely.

Mr. Li successfully operated an order hedging and earned about 2%.

In June, the account opened for a $800 order. At that time, Mr. Li felt that the exchange rate fluctuated more frequently, so he bought a group of futures through the foreign exchange futures market at a price of 3% down from the exchange rate.

Two months later, the delivery date of US $800 was delivered at the time of futures delivery. At that time, the exchange rate of RMB against the US dollar was about 1%.

If the exchange rate rises, then the day when the order is settled, the dollar exchanged between the two sides will also hedge the profit and loss of the futures market.