Exchange Rate Volatility Squeezing Profits From Foreign Trade Enterprises And "Anti Japanese" Road To Japanese Export Enterprises

< p style= "text-align: center" > < img border= "0" align= "center" alt= "" src= "" /uploadimages/201306/20/20130620085359.JPG "/" < > > "

< p > < < a href= > http://sjfzxm.com/news/index_cj.as > > yen > /a > a fall, we earn is equal to no profit! "Chen Mingfa is a little excited.

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< p > he is the deputy general manager of Hongxiang electrical appliances (Dongguan) Co., Ltd. (hereinafter referred to as "Hongxiang"). The Taiwanese funded enterprise that produced electric fans began to export to the Japanese market in the 70s of last century, and in Chen Mingfa's words it is "eating in Japan".

Their customers include well-known brands SANYO and Panasonic.

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< p > according to the data of China's Ministry of Commerce, the exchange rate of RMB against the yen has appreciated more than 13% this year.

In view of the current situation of manufacturing and OEM enterprises, Japan's unrestricted quantitative easing has led to the RMB remittance and even surpassed the profits of the enterprises themselves.

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< p > < strong > eat profit < /strong > /p >

< p > Chen Ming felt pressure.

Although orders are stable, there are about seven hundred thousand fans exported to Japan every year, which can be "a" href= "http://sjfzxm.com/news/index_q.asp" > exchange rate < /a > fluctuation, and they will eat a lot of profits.

Unlike most export companies settled in US dollars, Hong Xiang and Japanese customers settled in yen, so the floating rate of the yen has great impact on them.

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< p > floating exchange rate is the heart of foreign trade enterprises.

The head of a wool spinning enterprise in Dalang Town, Dongguan, once told reporters that the foreign trade industry generally needed 3~6 months to withdraw the funds. Once, millions of dollars were dragged on until next year's new year's day. Unfortunately, it suffered RMB appreciation and the company lost 1 million 500 thousand yuan.

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< p > June 19th, at the 2013 China processing trade products fair in Dongguan, some export enterprises including Chen Mingfa disclosed their measures to hedge their exchange rate risks.

Take Hongxiang as an example. They write with Japanese customers in the contract. If the yen rises in settlement, Hongxiang will make profits. If the Japanese yen depreciates, the customer will give up the loss of Hongxiang.

With the fluctuation of exchange rate, the price of each order is adjusted accordingly.

"We are assured of business if we have such a guarantee."

Chen Mingfa said.

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< p > but not every customer will be willing to sign such a safeguard clause.

Chen Mingfa told the newspaper reporter that if he had just started working with customers, he would not have asked for such a request, because it would make customers feel that they were calculating and calculating, and their business would not be very good. If they had worked together for a certain period of time, they would be able to make such a request after being familiar with their customers.

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< p > a Hong Kong funded enterprise engaged in LED lighting said that if interest rates fluctuate greatly and last longer, such as three months to half a year, the price adjustment will be discussed with clients.

And it's hard to talk about it. The general customers will ask the two sides to share it.

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< p > Dongguan Guang ran photoelectric Co., Ltd. (hereinafter referred to as "Guang ran optoelectronics") mainly produces lamps and lamps.

Besides North America and Mexico, Japan is also an important market for them.

They are settled in US dollars with Japanese customers.

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In order to avoid exchange rate risk, P also agreed with customers in the contract. Once the exchange rate fluctuated more than 3%, the price of products should be adjusted, but generally three months ahead of time should be negotiated with customers.

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Xie Xuanrui, chairman of "P", told reporters that the general price of products is adjusted once a year and rarely changes flexibly in the middle of the year. Frequent changes will only cause customers' dissatisfaction.

Only when the exchange rate fluctuates rapidly will there be a temporary adjustment of the price.

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< p > < strong > financial instruments < /strong > /p >

< p > for some a href= "http://sjfzxm.com/news/index_c.asp" > foreign trade enterprise < /a >, the bank's financial instruments can be used to avoid exchange rate risk.

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Less than P, light and light often purchase such banking products.

Xie Xuanrui revealed that they bought exchange rate options in a joint stock bank and one of the five largest banks. They usually invest 2 million yuan at a time, usually from 3 months to half a year.

"No one dares to buy too long."

He told the newspaper that in general, businesses with larger turnover would go to the bank to buy such products, while smaller businesses would digest the negative impact of the exchange rate themselves.

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< p > exchange rate option is the right to purchase or sell a certain amount of foreign exchange assets in accordance with the prescribed exchange rate after the contract purchaser pays certain option fees to the seller.

The advantage of this operation is that it can avoid the exchange risk caused by the fluctuation of foreign exchange.

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Several enterprises interviewed by reporters P said that when setting prices, they would take into account the risks of exchange rate and other risks, so the effect would not be too great for enterprises with a smaller margin.

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Ceng Tianren, chief executive officer of Dongguan Ying Qi industry Limited (hereinafter referred to as "Ying Qi"), told the newspaper that they had avoided exchange rate risk through a Hongkong bank in the first two years.

Ying Qi deposited Renminbi in the mainland branch of the bank and borrowed dollars from his overseas branch.

This will not be affected by exchange rate fluctuations.

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< p > reporter found that the major domestic banks have foreign exchange settlement services and products for foreign trade companies, such as forward settlement and exchange business, exchange rate option products and so on.

A staff member of a joint-stock bank told the newspaper that in recent years, the market's expectation of RMB appreciation is stronger and stronger, and the exchange rate of RMB also fluctuates frequently.

In order to avoid the risk of exchange rate fluctuations, many foreign trade enterprises take the initiative to apply for bank exchange rate avoidance business.

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< p > < strong > caution: < /strong > < /p >

< p > the central parity of RMB against yen announced by the central bank on Wednesday shows that 100 yen is 6.4470 yuan.

When Japanese Prime Minister Abe Shinzo took office last Christmas, 100 yen was still 7.3742 yuan against the yuan.

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< p > customs data show that exports increased by 13.5% in the first 5 months of this year, but export growth in May dropped sharply, with an increase of only 1%.

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< p > according to the analysis of the Ministry of Commerce, this is the result of the superposition of multiple factors. After the containment trade has been curbed, the growth of the mainland's trade with Hong Kong has dropped substantially, and it is also a true reflection of the severe and complex foreign trade situation.

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< p > according to the recent feedback from more than 1000 enterprises with key links between the Ministry of Commerce, more than 70% enterprises believe that RMB appreciation is the main factor affecting export.

Judging from the specific impact of RMB appreciation on enterprises, 83.7% of enterprises reflect a decline in export profits, 50.7% of enterprises' orders are reduced, 38.1% of enterprises only dare to receive short lists, dare not receive long orders, and 21.2% of enterprises dare not take orders or are forced to give up their performance.

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< p > Ceng Tianren said that enterprises are more cautious when they cooperate with customers. They will take into consideration the current price and exchange rate trend. If they feel they can't make money, they simply refuse to take orders.

When signing the contract, Ying Qi will emphasize more on the prepaid conditions and the time of repayment.

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< p > Ministry of commerce data show that the average export profit margin of the more than 1000 enterprises surveyed is less than 3%, of which 26.8% of enterprises have export losses.

"Such a situation not only directly affects the growth rate of exports in May, but also is expected to adversely affect exports for a few months."

"The stability of the RMB exchange rate is not something China can do unilaterally," Shen Danyang, spokesman of the Ministry of Commerce, said at a news conference on Tuesday.

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