Canton Fair; Digestion Capacity Approaching The Critical Point; Export Enterprises To Lock Forward Exchange Rate Increases To Avoid Risks.

In October 17th, the first phase of the 108th Canton Fair entered the third day.

Last Friday, the United States announced that it postponed the international trade and exchange rate policy report, which was originally announced in October 15th, and that the exchange rate war between China and the United States was postponed.

But for China in the Canton Fair

Enterprise

In a statement last Friday, the US Treasury said it decided to postpone the "half yearly report on international economic policy and exchange rate policy" which was originally scheduled to be submitted to parliament on the same day.

The statement said that the US Treasury Secretary has seen that China has accelerated the pace of RMB appreciation since the beginning of September, and maintained that "maintaining this situation is very important".

Data show that since the resumption of RMB exchange rate reform in June this year, the yuan has appreciated nearly 3% against the US dollar, and since September the renminbi has appreciated by 1% acceleration per month.

Since October 13th, it has continued to rise, breaking through 6.67, 6.66, 6.65 and three major gateways within three days.

Frequent fluctuations in the RMB exchange rate cause great psychological pressure on domestic exporters.

Miss Lin, a Guangdong machinery import and export company, counted out an account for reporters. In September, she had a $100 thousand bill, which was quoted at a time of 1 yuan to 6.74 yuan a month ago, equivalent to 674 thousand yuan, but after a month, the RMB exchange rate rose to 6.66.

Foreign trade enterprises experiencing similar experiences are few, especially those with lower product and lower added value.

Su Jing, a commercial counselor at the deputy director of the Ministry of foreign trade of the Ministry of Commerce, said that the profit margin of China's exporters is mostly 2%-5%, and the change of exchange rate will impact them.

"The ability of middle and high-end products to resist the risk of RMB appreciation is slightly better."

Zhu Wei Yi, deputy manager of Jiangsu Tiangong Tools Co., Ltd. said that although the products produced by enterprises are not very high-end, but gross profit is as high as 15%, the impact of RMB exchange rate is still affordable, and enterprises can also digest internally.

Chen Quanyou, deputy manager of overseas marketing department of Chaozhou Chuang Jia Electronics Co., Ltd., which produces LED televisions, admitted that the added value of products produced by enterprises is relatively high, which belongs to medium and high end commodities, and the enterprises take the brand route, which is not affected by the exchange rate.

He also revealed that not all raw materials are rising. The price of the display screen, which accounts for the large cost of LED TV sets, is decreasing, to a certain extent, to compensate for the losses caused by exchange rate fluctuations.

Lock up

Although the report will be postponed and the appreciation pressure of RMB will be slowed down, the exporters of this Canton Fair expect that the RMB exchange rate will continue to rise. When the quoted price is quoted, the price will be quoted according to the expected increase in the 1%-2% value of the RMB exchange rate.

"Since September, the RMB exchange rate has risen by more than 1%. At the same time, we are quoted at the rate of 6.5.

Guangdong Yulan decoration materials Co., Ltd. responsible person Huang told Yangcheng Evening News reporter.

"6.5 basically is everyone's consensus, everyone is raising the price, we have to raise the price, so long as we have positive communication with buyers, they will understand."

Chen Sheng, Zhongshan Black & Decker kitchen and bathroom Co. Ltd.

Chen Jing, deputy general manager of Zhongshan Diguang Auto Parts Industrial Co., Ltd., frankly, "lock in" 6.5 is only a "expedient measure". No one can predict how the RMB exchange rate will fluctuate in the future.

"Therefore, most enterprises are now afraid to pick up a single long list, and only receive a short list. The receipt will not exceed 1 months, so as to avoid the risk of exchange rate."

Enterprises with competitive products regard the exchange rate war as an opportunity.

Lu Shixiang, manager of Zhongshan Yongheng daily products Co., Ltd., said that the current exchange rate problem is actually an opportunity for their enterprises. When other enterprises are compelled to raise their prices because of the compression of profit space, their enterprises choose neither to raise prices nor to depreciate prices, but to pass the improved products, improve the quality and appearance of the products, and attract customers.

"Dealing with foreign businessmen, besides price, the quality of products and the technical content of products are bargaining chips."