RMB Devaluation "Sprout" Performance Of Listed Companies

On Wednesday, the depreciation of RMB depreciated to a lower level. The RMB against the US dollar immediately dropped below the 6.26 yuan integer pass, hitting a new low of over 18 months. The depreciation rate has expanded to about 3.5% this year.

From 2005 to 2013, the yuan rose more than 35%.

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< p > China's < a href= "http://www.91se91.com/news/index_c.asp" > A shares < /a > a quarterly report. There are a lot of foreign currency liabilities, assets such as aviation, shipping and other industries, many leading enterprises have been hit by the exchange loss, and the exchange gains and losses have become one of the poor performance "fig leaf".

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The main reason for the depreciation of RMB P is that there are a large number of foreign currency liabilities, assets of aviation, shipping, real estate, copper and import enterprises, "said Li Liuyang, chief analyst of MITSUBISHI Tokyo daily bank (China). It is customary to enjoy the foreign exchange risk exposure of these enterprises which have brought huge gains in the past few years. The foreign exchange risk exposure of the balance sheet will be large. Where can we have the motivation and sufficient tools to avoid the risk of exchange?" /p >

< p > a head of the capital and capital market of a Chinese capital bank admitted that "the proportion of the export enterprises that purchase RMB forward hedge contracts is very low, not to mention the import enterprises, but this year, 3-4 months later, the contracts for buying remote hedging by importers began to increase.

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< p > Guan Tao, director of the international balance of Payments Division of the State Administration of foreign exchange, said in a forum that "before the management of enterprises is the risk of RMB appreciation, there is no effective management of the risk of devaluation of the indebtedness, and this aspect needs to be further strengthened in the future."

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Since March 17th, the Central Bank of China has extended the daily fluctuation of RMB exchange rate to 2%, and the RMB has continued to decline. The operation and settlement of China's import and export enterprises have changed a lot. Enterprises with large US dollar liabilities suddenly need to face a lot of exchange losses.

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< p > < strong > aviation and shipping enterprises concentrated mines area < /strong > < /p >

"P > since February this year, the depreciation of the RMB against the US dollar has made the textile and garment manufacturers and exporters of foreign exchange suffered a" respite "for several years, while the aviation, aviation and real estate industries, which had benefited from the appreciation of the renminbi, were dismal.

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In 2013, the exchange earnings of Air China, China Southern Airlines and Eastern Airlines reached 1 billion 938 million yuan, 2 billion 706 million yuan and 1 billion 976 million yuan respectively, and three of them were among the top ten listed companies in the net income of P.

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< p > Li Liuyang pointed out that there should be a large number of exchange rate exposures on the balance sheets of these airlines, and the probability of using foreign exchange tools for hedging is low because of the gradual appreciation of RMB for many years.

Many companies firmly believe that in the second half of the year, the currency will return to the rally, thereby reducing the current book loss.

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"P": "in the past few years, the renminbi brought us the exchange earnings. At that time, it was unlikely to buy a long-term hedging contract to cover all the risks. That is to say that it is no gain, but now it is a loss and unpredictable market change. It is very difficult to break through the inertia, but it will still use some forward contracts to avoid certain risks."

A person responsible for financial affairs of Air China said.

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< p > the largest container manufacturer in the world, CIMC group lost 360 million of its forward contracts in the first quarter due to < a href= "http://www.91se91.com/news/index_c.asp" > foreign exchange < /a >, while the company's net profit in the same period was only 128 million.

China's offshore financial costs surged to 777 million yuan, mainly due to huge exchange losses.

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< p > and the exchange rate depreciation of Baoshan iron and steel in the first quarter of China's steel industry has also resulted in a loss of 280 million yuan.

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In recent years, Chinese real estate developers have been turning to foreign currencies for overseas financing because of constant tightening of banks, and the risk of foreign currency debt can not be peep at P.

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< p > Morgan Stanley report shows that most housing companies have not hedged the risk of overseas loans, and this year the loan of China's real estate industry is expected to increase.

Data from Dealogic, a UK market research firm, also showed that the unpaid US dollar debt of China's real estate industry reached $45 billion 900 million as of March 6th.

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< p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > > appreciation > /a > inertial thinking needs to be changed < /strong > /p >

< p > a person from the foreign trade department of the Shandong Provincial Department of Commerce said that many enterprises are still at risk in preventing foreign trade risks and regard the loss of exchange rate fluctuations as an irresistible force.

He estimates that only about 10% of Shandong's current long-term financial options such as options can be used to circumvent exchange rate risks.

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< p > because of the long term unilateral appreciation of the RMB exchange rate and low volatility, many import enterprises and a large number of foreign debt enterprises have not effectively hedged the exposure risk of foreign currency liabilities.

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< p > statistics show that as a result of the depreciation of the RMB, China's aviation enterprises generally suffered a 700 million yuan exchange loss in February 2014, compared with 100 million yuan in the same period last year.

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< p > "inertia pformation is very difficult. Although our company manages the foreign exchange loan scale of the whole group with the capital settlement center mode, the risk of foreign exchange risk has not been completely covered. At present, the freight pportation hedging is better and the forward contracts and swaps are limited."

A finance company of a central enterprise freight forwarder said to Reuters.

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"P >", the yen exchange rate is often very volatile, Japanese enterprises generally use the interest rate and exchange rate options to hedge risks, while domestic enterprises, the inertia thinking of gambling on RMB unilateral appreciation has not reversed, but the RMB has not risen or depreciated, the two-way fluctuation period of the exchange rate has arrived.

Li Liuyang said that risk aversion and hedging tools should be considered now.

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