China Textile Co., Ltd

According to the online media, CICC published a research report that the signing of the regional comprehensive economic partnership agreement (RCEP) will help reduce tariff costs among countries, and the internationalization process of China's textile brands is expected to go further, Shenzhou International (02313) and Tianhong textile (02678) are recommended.

According to the CICC report, a typical value chain of textile and garment industry is that China imports wool from Australia and New Zealand, and then fabrics are exported to Vietnam, and Vietnam completes the garment weaving and exports to Japan and South Korea. After the agreement comes into effect, the tariff between the above links is expected to be reduced. According to the report, as a textile producer and exporter, the high stability of China's supply chain has attracted much attention. The current valuation of the textile and garment sector is attractive, and it is recommended to focus on the leading companies in each sub sector 。

In addition, CICC analysts also believe that RCEP is conducive to the expansion of China's consumer electronics and consumer electronics brands in the Asia Pacific region. Although the short-term impact is small, it is conducive to the long-term improvement of the valuation of related targets.