"Shortage Of Money" Severe Test Of Shaoxing's Small And Medium-Sized Textile Enterprises In The "Go To Inventory Period"

　 At present, the strengthening of national macroeconomic regulation and control and tightening of monetary policy are a severe test of the Shaoxing textile and garment industry, which is dominated by small and medium-sized enterprises.

Since May 18th this year, the central bank has again raised the deposit reserve ratio of deposit financial institutions by 0.5 percentage points, which is the fifth time that the central bank has raised the deposit reserve ratio in the year. It is also the eleventh increase in the reserve ratio of the central bank since last year. After the rise, the deposit reserve ratio of large and medium-sized financial institutions reached a high level of 21%.

Every time the deposit reserve rate is raised, it means that more funds are frozen and businesses can borrow less. It is estimated that after the increase, the bank funds can be frozen at once for about 370000000000 yuan.

Analysts believe the move is intended to further ease the liquidity of the market. Moreover, analysts predict that inflation is still the main target of the year. Therefore, the future macro-control measures such as raising the deposit reserve ratio and raising interest rates may still be applied.

For most small and medium textiles in Shaoxing Clothing enterprise This is obviously bad news.

The "shortage of money" brought about by severe regulation is being severely tested. Many local textile enterprises have said that the capital chain is tight and they feel the days are hard. In addition to the closure of several enterprises in Wenzhou and other places in recent years, although the bankruptcy of these enterprises has been clarified by the local government, it is because of their poor management or other reasons, but the negative news has cast a shadow over the market.

Due to tight funds, many enterprises have increased inventories. Order Reduce and pick up volume. The demand of downstream enterprises is not strong, which makes some textile enterprises run a difficult time. Because inventory is difficult to digest at the moment, some capital strained enterprises choose to promote sales in order to withdraw funds and digest stock by "cutting meat". This makes some textile enterprises have entered a difficult "inventory period".

There is also a continued appreciation of the renminbi.

Since the resumption of the RMB exchange rate reform in June 2010, the RMB has continued to appreciate against the US dollar. At present, the exchange rate has fallen below the 6.50 pass, and in May 31st, 1 yuan to the central parity of RMB was 6.4845 yuan. Shaoxing has more and more small and medium-sized enterprises, and some small and medium-sized enterprises have not strong bargaining power. The continued appreciation of the renminbi has reduced the export profits of these enterprises to a certain extent, making these small and medium-sized textile and garment enterprises very difficult.

Many enterprises believe that China's textile and garment industry has occupied the foreign market with low cost for many years. Because of the rapid appreciation of RMB, labor costs have increased, pushing up the cost of production of enterprises, thus weakening the export competitive advantage of foreign trade enterprises, and transferring foreign companies to low-cost countries such as Southeast Asia.

In addition, from the international environment, the impact of the current economic crisis on countries such as Europe and the United States has not subsided, and some countries are facing a new round of tests. International crude oil prices have also been fluctuating in recent days, and the instability of some countries has brought great influence to brand buyers in Europe and America. Price factors have played an important role in their procurement.

According to local enterprises, some of the orders in the Mediterranean and other European countries have shifted to some countries and regions in Eastern Europe. Many international buyers have shifted some European orders to Bangladesh, Pakistan, Laos and Indonesia. Among them, the transformation of Arabia countries made the employer turn to Turkey.

Combined with the continuous fluctuation of cotton prices, under the combined influence of various unfavorable factors, the current situation of textile enterprises in Shaoxing area has been out of order. Among them, there are more short and medium lists, and relatively long ones.

For example, the Keqiao index May foreign trade prosperity index shows that in May, the foreign trade boom closed at 1597.98 points, down 0.34% from April, down 21.73% from the beginning of the year, which has been falling for three consecutive months since January (February Spring Festival has not yet been counted); the foreign trade price index closed at 144.14 points, down 10.88% compared with April; the foreign trade confidence index closed at 1033.66 points, down 0.45% from that of February.

The reaction of Shaoxing's local enterprises is different from the previous two years. Purchaser Instead, it became a supplier. The head of a foreign trade company said that now the company does not allow long orders, especially exports to Europe and the United States, but to take more short-term orders, because enterprises worry about losses caused by exchange rate settlement. {page_break}

At the same time, due to the reduction of orders and most of the short list, a large number of backlog of inventory makes export-oriented cotton textile enterprises overwhelmed. According to the introduction, Shaoxing's textile and clothing foreign trade company's cotton fabric orders and cotton prices are stable when compared with 8%~10%.

Comments: strict regulation and control, Shaoxing small and medium textile enterprises are undergoing transformation pains.