As one of pillar industries, textile industrial output value in recent years has been rising steadily, 2009 to our GNP 11.3 per cent. Can say, the textile industry and not only affect the economic development in China, but also to the employment problem about 2000 people. Although the state has put forward and backward textile transformation capacity requirements, but due to various factors, the overall progress has been slow. Today, China's textile industry in 2008 experienced unprecedented large fall big. The 2008 international financial crisis, the global textile slowdown in demand, textile enterprises, enterprises have bogged down by downtime, cutting staff to maintain business, but still cannot avoid capital chain rupture. Until 2009 second half of international and domestic economy reverting to increase gradually, makes the textile industry. At present, with the financial crisis in textile industry, showing a thriving scene, textiles, enterprise orders, but the price rise along behind but prosperity hidden deep problems such as the rise in the price of raw materials, the RMB appreciation pressure on the domestic industry constitute a threat.
Textile industry prosperity problem
Rising raw material costs
Since April last year, along with the global economy, China's textile industry gradually recovery gradually, cotton, chemical fiber etc reverting textile raw materials prices rise. So far this year, 328 grade 5 month average DaoChangJia totaling rise around cotton 4742 yuan/ton, rose, Viscose staple totaling rise 7,000 yuan/ton, or 54.7%, Polyester staple fiber totaling rise 26.5 yuan/ton, 33.5% rise. As is known to all, as the labor-intensive industries, the textile industry profits have been relatively low levels, coupled with the current textile industry has not completed industrial upgrading, relatively backward production techniques and low capacity utilization, textile enterprises face raw material prices, but not dramatically increase through the textile prices costs to consumers. For foreign clients, if our textile no price advantage, they will choose Vietnam, Indonesia etc. Has more advantages to purchase price of textiles, Due to the domestic customers, textile industry is very competitive and increase the price means losing market. Thus, the textile industry profits will be further compression. At present, the domestic textile enterprises in "the customer" and the "profits", once the customer to choose between the loss, the enterprise eventually will collapse, so more and more enterprises to keep customers choose sacrifice profits.
Rising labor costs
Since this spring from the pearl river delta and the Yangtze river delta region, the employment problem to waste from recent events can see foxconn staff, Labour market changes occurring in the buyer's market from the previous: for the seller's market now. This change is the inevitable result of the development of social economy, and also is a kind of long-term accumulated outbreak. First, in the physical Labour crowd fully realize its value, no cheap labor. If the employer cannot give them think reasonable wages, they will choose to leave, seek compensation work better. Secondly, "homecoming" trend obviously. In recent years, due to the national agricultural and rural construction vigorously support and peasant's living standard and income has greatly improved, part of the migrant workers are more willing to return home, Others in the city for many years, learn professional work, home, seeking a better development. Again, the Labour market, the overall quality of younger age structure level. At present, urban migrant workers to the personnel with "after 80" and "after" primarily, by 90 degree in education, noting that the generally high salary, pay more attention to the choice of career prospects. Quite part of young workers would not work in the pipelining, increase the employment sewing worker of liquidity, caused the local labor tension appeared.
For this change, can be mixed. Happy is China's migrant workers thought consciousness and improve overall level, gradually realized their value. Sorrow is many domestic enterprises from the technology, equipment and management level and product margins remain behind in low, especially the labor-intensive industries, such as textile clothing enterprise profit margins average pure only 3% to 5%, some even less than 3%, in wages may make the enterprise into difficulties. At present, although integrated manufacturing factories or around the world, but obviously the extremely cheap labor time has gone. With the rising labor costs will make home textile enterprise under great pressure.
Renminbi appreciation China textile threat
In recent months, the RMB appreciation again become the focus of attention of international society. Although March 6 years in China, but the first appeared in the trade deficit after April, realize the surplus rebound 16.82 billion dollars. Us-led western governments and organizations to our pressure ceaselessly, India, Brazil and developing countries also have thrown the support of RMB appreciation.
On July 21, 2005, China began to implement based on market supply and demand, with reference to a basket of currencies, a managed floating exchange rate system, but the 2008 international financial crisis, allowing the yuan peg again. On June 21, the people's bank of China announced the accelerating pace of currency reform, restore the floating exchange rate policy. Due to the western countries generally thought that RMB valuation is too low, it will surely make restart overseas investors and speculators aggressively buying RMB appreciation of its.
Objective perspective, the RMB appreciation and exchange rate reform advantages and disadvantages coexist. First, the two-way fluctuation to reduce oil, non-ferrous metal and other commodities import costs, and help our ease input type inflationary pressures. Secondly, it can make our import and export trade surplus narrowed gradually balance, with the GDP of export enterprises, accelerate industrial upgrade and transformation. Again, still can enhance national overall consumption ability, this is our comprehensive national strength in the world of a kind of expression.
Disadvantages, first to short-term will make China currently hold the dollar-denominated assets. Secondly, to the appreciation of the renminbi may occur after will lead to some Chinese exports of high reliance industries, especially the plight of textile, electronic manufacturing labor-intensive industries.
Overall, the RMB exchange rate reform the obvious advantages outweigh the disadvantages. In the long run, simply rely on exports of economic sustainability is not strong, can make our way forward. RMB appreciation, once the impact of textiles exports is self-evident. Although the national forward backward productivity and upgrade of industry transformation of the target, but need a relatively long process. At present, if the renminbi appreciation, will make our textile enterprise into a dilemma, one side is rising prices of raw materials, the other side is mainly textiles importers and renminbi appreciation for the quotation unceasingly down. If this situation continues, will further backlog lowly textile industry profit space, textile enterprises are facing the choice will be closed or abandon overseas production order.
Global economic recovery is slow
Earlier this year, the global economy to lower overall recovery steps governments and economists expected. Firstly, the United States is in the financial crisis occurs rapidly after issued a series of aid program, and gradually implementing financial reform, make its rapidly from the crisis, but out of GDP 2/3 of the consumer spending is still not much improvement. From this year's economic data, American quarter GDP growth: 3.0%, than expected 3.4%, Enterprise after-tax profit, but the increase in spending fell among enterprises, in just turn good operating condition, most companies are not willing to increase total employment. But in recent months, American non-agricultural unemployment often repeated, June 9.5 percent and still wandering in a high. Only when the overall unemployment has fallen to the financial crisis, when we before 5% to return to the original of the U.S. economy, and the steady growth of at least 3 years. Therefore, the United States to China textile imports recently won't have increased.
Secondly, the European economic slow recovery situation really worrying. The 2008 international financial crisis, Europe is the most serious after the United States the disaster area. Obviously, compared with America, the eu's rapid recovery of most member states of the crisis is slow pace and heavy, including many factors, the most important thing is to member states split asunder. Then the Greek debt crisis is a typical example, due to the rescue plan can't reached, panic spread to. But when Spain, Portugal successively quote sovereignty, eu and debt crisis of the international monetary fund finally introduced total 7,500 billion euros in European economic aid program, but the plan implementation details has not confirmed. Although at present the mess in Europe, but eased slightly can be affirmed is, the eurozone economic recovery will experience a very long period. When European government announced that it would cut expenditure and wu tight pocket, follow the requirements of China's textile is back. As China's largest textiles demand in China, the textile export contribution is unable to substitute other economies in 2009, only to global export clothing $107 billion, up to European 284.09 26.5%, totaling $.
FangQi hedge risk by futures
The stated above problems must be within the domestic industry in recent years, so we pose a threat to cope with the challenges?
In recent years, although the Chinese financial market achieved rapid development and progress, but compared with the developed western countries financial markets remains relatively conservative and backward, domestic most involved in import and export of raw materials and products in foreign currency futures enterprises through hedging to hedge exchange rate fluctuations bring risks. But for textile enterprises in China, can completely through commodity futures market for cotton materials for hedging.
Restricting factors of textile enterprises to participate in the TaoBao
Hedging of enterprise's production and business activities can play an inestimable role, but at present the commodities market enterprises to participate in the hedging situation is not very optimistic, especially cotton and sugar soft goods. According to march in the China international textile yarn (spring) exhibition the latest statistics show that the sampling investigation in 32 home textile enterprises, only 5 companies are or participated in futures hedging, the rest are not involved. Will scale, the 5 companies are smaller, private enterprise, the annual sales are 50 million yuan. While larger shareholding private enterprises or state-owned enterprises have not participated in these enterprises, hedging in futures is extremely cautious when. The reason of which has the following three aspects:
First, the enterprise knowledge of the futures market, don't know hedging function and operation method. Although our futures market development for nearly 20 years, but really understand it and not many enterprises. Whenever we talk to futures, the first thought of risk is big, some enterprises will hear futures. In fact, the futures market participants are divided into two kinds: one kind is hedgers, speculators. Speculators to withstand high, can get high yield. Participate in hedging enterprise, the reasonable use of its operation method of the stock and futures value, product can maximize circumvent fluctuations in the price of raw materials and products.
Second, the company system. In our long-term contact with stock enterprise, the company found in the current system largely limits the enterprises to participate in the possibility of hedging. According to the general nature and scale, the enterprise can be divided into three categories: state-owned enterprises, large scale stock listed companies and smaller enterprises or private. On state-owned enterprise, complex, time-consuming procedures will probably make the futures TaoBao scheme, even if approved, disappear when participating in futures trading and trival decision-making procedures. Because of the state-owned enterprise futures trading department in charge, no decisions can be bought or sold, the former plan must be reported to the responsible person of the enterprise, and wait for the leadership and other after approval by the futures market orders, but may be delayed, often the best opportunities. Larger shareholding private enterprises also exist with the same questions. Meanwhile, when a hedging loss, the responsibility of problem again will become trouble, if it is not profitable futures, if losses, the responsible person of the enterprise will be under a lot of pressure. This is why the state-owned enterprise and joint-stock enterprises generally unwilling to participate in futures hedging. Smaller private companies, high efficiency in the hedging does not need the layers of examination and approval, the responsible person of the enterprise will generally assigned special personnel responsible for trading decision. Moreover, because this kind of enterprise belongs to individual nature, also won't worry because of enterprises in TaoBao futures and individual performance.
Third, the problems of shortage of funds that can participate in hedging. Generally speaking, the enterprise in the production and management will need a lot of money to operate, let out a fund for enterprise is not realistic hedging. Therefore, it is a part of enterprise is abandoned by participating in futures hedging to avoid the risk of rising prices of raw materials.Conquer enterprises to participate in the TaoBao problem solution
For restricted textile enterprises to participate in the above three futures hedging "dashan", is unable to conquer.
First, for textile enterprise of futures knowledge training. The enterprise wants to fully understand the futures market hedging, actually not difficult, can with qualification and larger scale of futures companies, and to make contact with the basic knowledge of futures trading firm in training, in order to help more thorough understanding of relevant personnel to futures and hedging the benefits of enterprises in the futures market, no longer fear and boycott of hedging, change the wrong view.
In June 2008, shandong some textile received a September delivery of orders, so plan in textile purchasing of cotton used in July. Some traders with local due to keep good relations of cooperation, the textile on June 10th decided instead of signing of 100 tons of purchase contract, price for 13853 yuan/ton. Although the price below market price 30 yuan/ton, but considering the domestic and international economic situation, the leaders worry MianJia plunged, so will make the decision of hedging in futures, namely open hand sell cotton futures contracts, 20 price for 14335 yuan/ton. Thereafter, the international financial crisis fiercer, governments have announced that the policy, China's textile industry, the demand on July 28, domestic cotton spot prices 154 yuan/ton, for 13699 yuan/ton. Because of the need to buy stock in textile, decides to buy unwind all 20 hands futures contract, price for 13610 yuan/ton, total profit 72500 yuan, increasing cost of buying stock deduct $15,400, and finally achieve earnings 57100 yuan.
Due to the 2005 showed 2009 after planting area have reported listed in cotton production narrow expectations of a large textile enterprises in hebei province, MianJia about future will rise sharply, in consultation with the futures companies, decide by futures hedging to hedge MianJia to bring up the pressure. The enterprise in October 2009 22 open hand cotton futures contracts bought 100, clinch a deal the price for 15030 yuan/ton. As the company expected recovery and downstream industry demand, cotton prices rise. Until March 5th, the cotton price level 328 for 15,200 yuan/ton, rising 1327 yuan/ton. Now, the company received a large order, decided to buy stock in production. For the enterprise receivables, sell its hands full 100 cotton futures contract, price for 16755 yuan/ton. On the same day, the enterprise in the stock market of 500 tons of cotton increased 663500 yuan cost, but the enterprise in the futures market totaling $862500 earnings. Overall, the enterprises in the spot when buy, not only did not pay, but also make the 199000 yuan.
From the above two examples that enterprises to participate in the futures hedging, not only can evade the risks of rising prices of raw materials, but also can lock profits. In the prices of raw materials, huge when the efficacy of hedging futures will reflect incisively and vividly, and occupy the market of hedging enterprise good timing. When others not participate in the enterprise value from the spot price fluctuations in torment, the enterprise may use its value to exploit market, the cost advantage is rapid development.
Secondly, to establish an effective internal control system, standardize trade activities, prevent risks. For the company system restriction in futures hedging problem, we think either state-owned enterprises, private enterprises or share-holding system in accordance with the following modes can establish an effective internal control mechanisms to prevent the illegal business operations and risk, without approval, such as layer can greatly improve the working efficiency, and effectively preventing the risk.
2009, institute of mid to help a well-established textile enterprise designed a set of perfect internal control mode, and get the praise of the whole, until now the process system is still in good condition, to bring good hedging benefits. This mechanism mainly consists of three parts: receptionist (futures department), background (department) and raise (risk monitoring department).
Receptionist is mainly responsible for the transaction, though periodically to raise and backend trading strategy and facilities case report, but there are trading decisions and implement the right timing, not delay trading. As the background, the financial department only accept money transfers man instructions futures margin transfer, accounting treatment, responsible for reviewing and trade bureau, confirm, and various financial entrusted business transactions and tracking, At the same time, according to the provisions of the regulatory front and back, and trade settlement at any time to assist in front of the trading personnel making profit-and-loss report, assessment of the risks of transactions. Our most important is the system of a ring, plays a role in front, risk monitoring and all the business operation background.
Once found potential risk to the related personnel, timely, and checked to futures business leadership team reports. In this system, the three departments closely linked, mutual cooperation, mutual restrict, not only can seize opportunities, but also to the best of risk control and supervision also played a positive role.
Again, the combination of strategy, hedging. TaoBao funds needed for enterprises to participate in the solution, actually not complicated. If unable to raise enough money to realize the spot, enterprises can TaoBao completely according to the change of raw material prices, take part hedging strategy. For example, a textile enterprises need to buy cotton in November, its stock 500 tons can completely according to their cash flow, 500 tons of cotton in its part.
Although this method can fully realize risk hedging, but can be reduced to a certain extent in the spot price fluctuation of risk to enterprises. Meanwhile, the enterprise can still time to hedge. When the enterprise cash flow is abundant, at a time when the stock price fluctuation, the enterprise can greatly value futures.
Note that, when the spot price is more stable, enterprises need to hedging. Thus, with its strategy, components, textile enterprises not only solved the problem of the hedging funds, and its price fluctuation of the raw materials needed for a certain degree of risk aversion. Of course, with China's economic development and the deepening of the reform of the financial market will gradually become more stable, open, and that in the near future, the enterprise can use the bank loans for hedging.
Theory of"
At present the intricacies of the economic situation, textile enterprise, if want to in the increasingly fierce competition in the industry development, should maintain stable long-term development business strategy formulation and initiative, favoured. First, to accelerate the pace of transformation of enterprises, and gradually achieve high efficiency, high quality, innovation and brand internationalization development target.
Secondly, the establishment of a more perfect the risk management system, use futures market for the hedging cost saving raw materials procurement and lock product profit. In short, only when the real ability against the risk of ascension, textile production management to more stability and sustainable, continuously is bigger and stronger, in an invincible position in the industry.
"Chinese textile net source."
Editor: lu be be
Textile industry prosperity problem
Rising raw material costs
Since April last year, along with the global economy, China's textile industry gradually recovery gradually, cotton, chemical fiber etc reverting textile raw materials prices rise. So far this year, 328 grade 5 month average DaoChangJia totaling rise around cotton 4742 yuan/ton, rose, Viscose staple totaling rise 7,000 yuan/ton, or 54.7%, Polyester staple fiber totaling rise 26.5 yuan/ton, 33.5% rise. As is known to all, as the labor-intensive industries, the textile industry profits have been relatively low levels, coupled with the current textile industry has not completed industrial upgrading, relatively backward production techniques and low capacity utilization, textile enterprises face raw material prices, but not dramatically increase through the textile prices costs to consumers. For foreign clients, if our textile no price advantage, they will choose Vietnam, Indonesia etc. Has more advantages to purchase price of textiles, Due to the domestic customers, textile industry is very competitive and increase the price means losing market. Thus, the textile industry profits will be further compression. At present, the domestic textile enterprises in "the customer" and the "profits", once the customer to choose between the loss, the enterprise eventually will collapse, so more and more enterprises to keep customers choose sacrifice profits.
Rising labor costs
Since this spring from the pearl river delta and the Yangtze river delta region, the employment problem to waste from recent events can see foxconn staff, Labour market changes occurring in the buyer's market from the previous: for the seller's market now. This change is the inevitable result of the development of social economy, and also is a kind of long-term accumulated outbreak. First, in the physical Labour crowd fully realize its value, no cheap labor. If the employer cannot give them think reasonable wages, they will choose to leave, seek compensation work better. Secondly, "homecoming" trend obviously. In recent years, due to the national agricultural and rural construction vigorously support and peasant's living standard and income has greatly improved, part of the migrant workers are more willing to return home, Others in the city for many years, learn professional work, home, seeking a better development. Again, the Labour market, the overall quality of younger age structure level. At present, urban migrant workers to the personnel with "after 80" and "after" primarily, by 90 degree in education, noting that the generally high salary, pay more attention to the choice of career prospects. Quite part of young workers would not work in the pipelining, increase the employment sewing worker of liquidity, caused the local labor tension appeared.
For this change, can be mixed. Happy is China's migrant workers thought consciousness and improve overall level, gradually realized their value. Sorrow is many domestic enterprises from the technology, equipment and management level and product margins remain behind in low, especially the labor-intensive industries, such as textile clothing enterprise profit margins average pure only 3% to 5%, some even less than 3%, in wages may make the enterprise into difficulties. At present, although integrated manufacturing factories or around the world, but obviously the extremely cheap labor time has gone. With the rising labor costs will make home textile enterprise under great pressure.
Renminbi appreciation China textile threat
In recent months, the RMB appreciation again become the focus of attention of international society. Although March 6 years in China, but the first appeared in the trade deficit after April, realize the surplus rebound 16.82 billion dollars. Us-led western governments and organizations to our pressure ceaselessly, India, Brazil and developing countries also have thrown the support of RMB appreciation.
On July 21, 2005, China began to implement based on market supply and demand, with reference to a basket of currencies, a managed floating exchange rate system, but the 2008 international financial crisis, allowing the yuan peg again. On June 21, the people's bank of China announced the accelerating pace of currency reform, restore the floating exchange rate policy. Due to the western countries generally thought that RMB valuation is too low, it will surely make restart overseas investors and speculators aggressively buying RMB appreciation of its.
Objective perspective, the RMB appreciation and exchange rate reform advantages and disadvantages coexist. First, the two-way fluctuation to reduce oil, non-ferrous metal and other commodities import costs, and help our ease input type inflationary pressures. Secondly, it can make our import and export trade surplus narrowed gradually balance, with the GDP of export enterprises, accelerate industrial upgrade and transformation. Again, still can enhance national overall consumption ability, this is our comprehensive national strength in the world of a kind of expression.
Disadvantages, first to short-term will make China currently hold the dollar-denominated assets. Secondly, to the appreciation of the renminbi may occur after will lead to some Chinese exports of high reliance industries, especially the plight of textile, electronic manufacturing labor-intensive industries.
Overall, the RMB exchange rate reform the obvious advantages outweigh the disadvantages. In the long run, simply rely on exports of economic sustainability is not strong, can make our way forward. RMB appreciation, once the impact of textiles exports is self-evident. Although the national forward backward productivity and upgrade of industry transformation of the target, but need a relatively long process. At present, if the renminbi appreciation, will make our textile enterprise into a dilemma, one side is rising prices of raw materials, the other side is mainly textiles importers and renminbi appreciation for the quotation unceasingly down. If this situation continues, will further backlog lowly textile industry profit space, textile enterprises are facing the choice will be closed or abandon overseas production order.
Global economic recovery is slow
Earlier this year, the global economy to lower overall recovery steps governments and economists expected. Firstly, the United States is in the financial crisis occurs rapidly after issued a series of aid program, and gradually implementing financial reform, make its rapidly from the crisis, but out of GDP 2/3 of the consumer spending is still not much improvement. From this year's economic data, American quarter GDP growth: 3.0%, than expected 3.4%, Enterprise after-tax profit, but the increase in spending fell among enterprises, in just turn good operating condition, most companies are not willing to increase total employment. But in recent months, American non-agricultural unemployment often repeated, June 9.5 percent and still wandering in a high. Only when the overall unemployment has fallen to the financial crisis, when we before 5% to return to the original of the U.S. economy, and the steady growth of at least 3 years. Therefore, the United States to China textile imports recently won't have increased.
Secondly, the European economic slow recovery situation really worrying. The 2008 international financial crisis, Europe is the most serious after the United States the disaster area. Obviously, compared with America, the eu's rapid recovery of most member states of the crisis is slow pace and heavy, including many factors, the most important thing is to member states split asunder. Then the Greek debt crisis is a typical example, due to the rescue plan can't reached, panic spread to. But when Spain, Portugal successively quote sovereignty, eu and debt crisis of the international monetary fund finally introduced total 7,500 billion euros in European economic aid program, but the plan implementation details has not confirmed. Although at present the mess in Europe, but eased slightly can be affirmed is, the eurozone economic recovery will experience a very long period. When European government announced that it would cut expenditure and wu tight pocket, follow the requirements of China's textile is back. As China's largest textiles demand in China, the textile export contribution is unable to substitute other economies in 2009, only to global export clothing $107 billion, up to European 284.09 26.5%, totaling $.
FangQi hedge risk by futures
The stated above problems must be within the domestic industry in recent years, so we pose a threat to cope with the challenges?
In recent years, although the Chinese financial market achieved rapid development and progress, but compared with the developed western countries financial markets remains relatively conservative and backward, domestic most involved in import and export of raw materials and products in foreign currency futures enterprises through hedging to hedge exchange rate fluctuations bring risks. But for textile enterprises in China, can completely through commodity futures market for cotton materials for hedging.
Restricting factors of textile enterprises to participate in the TaoBao
Hedging of enterprise's production and business activities can play an inestimable role, but at present the commodities market enterprises to participate in the hedging situation is not very optimistic, especially cotton and sugar soft goods. According to march in the China international textile yarn (spring) exhibition the latest statistics show that the sampling investigation in 32 home textile enterprises, only 5 companies are or participated in futures hedging, the rest are not involved. Will scale, the 5 companies are smaller, private enterprise, the annual sales are 50 million yuan. While larger shareholding private enterprises or state-owned enterprises have not participated in these enterprises, hedging in futures is extremely cautious when. The reason of which has the following three aspects:
First, the enterprise knowledge of the futures market, don't know hedging function and operation method. Although our futures market development for nearly 20 years, but really understand it and not many enterprises. Whenever we talk to futures, the first thought of risk is big, some enterprises will hear futures. In fact, the futures market participants are divided into two kinds: one kind is hedgers, speculators. Speculators to withstand high, can get high yield. Participate in hedging enterprise, the reasonable use of its operation method of the stock and futures value, product can maximize circumvent fluctuations in the price of raw materials and products.
Second, the company system. In our long-term contact with stock enterprise, the company found in the current system largely limits the enterprises to participate in the possibility of hedging. According to the general nature and scale, the enterprise can be divided into three categories: state-owned enterprises, large scale stock listed companies and smaller enterprises or private. On state-owned enterprise, complex, time-consuming procedures will probably make the futures TaoBao scheme, even if approved, disappear when participating in futures trading and trival decision-making procedures. Because of the state-owned enterprise futures trading department in charge, no decisions can be bought or sold, the former plan must be reported to the responsible person of the enterprise, and wait for the leadership and other after approval by the futures market orders, but may be delayed, often the best opportunities. Larger shareholding private enterprises also exist with the same questions. Meanwhile, when a hedging loss, the responsibility of problem again will become trouble, if it is not profitable futures, if losses, the responsible person of the enterprise will be under a lot of pressure. This is why the state-owned enterprise and joint-stock enterprises generally unwilling to participate in futures hedging. Smaller private companies, high efficiency in the hedging does not need the layers of examination and approval, the responsible person of the enterprise will generally assigned special personnel responsible for trading decision. Moreover, because this kind of enterprise belongs to individual nature, also won't worry because of enterprises in TaoBao futures and individual performance.
Third, the problems of shortage of funds that can participate in hedging. Generally speaking, the enterprise in the production and management will need a lot of money to operate, let out a fund for enterprise is not realistic hedging. Therefore, it is a part of enterprise is abandoned by participating in futures hedging to avoid the risk of rising prices of raw materials.Conquer enterprises to participate in the TaoBao problem solution
For restricted textile enterprises to participate in the above three futures hedging "dashan", is unable to conquer.
First, for textile enterprise of futures knowledge training. The enterprise wants to fully understand the futures market hedging, actually not difficult, can with qualification and larger scale of futures companies, and to make contact with the basic knowledge of futures trading firm in training, in order to help more thorough understanding of relevant personnel to futures and hedging the benefits of enterprises in the futures market, no longer fear and boycott of hedging, change the wrong view.
In June 2008, shandong some textile received a September delivery of orders, so plan in textile purchasing of cotton used in July. Some traders with local due to keep good relations of cooperation, the textile on June 10th decided instead of signing of 100 tons of purchase contract, price for 13853 yuan/ton. Although the price below market price 30 yuan/ton, but considering the domestic and international economic situation, the leaders worry MianJia plunged, so will make the decision of hedging in futures, namely open hand sell cotton futures contracts, 20 price for 14335 yuan/ton. Thereafter, the international financial crisis fiercer, governments have announced that the policy, China's textile industry, the demand on July 28, domestic cotton spot prices 154 yuan/ton, for 13699 yuan/ton. Because of the need to buy stock in textile, decides to buy unwind all 20 hands futures contract, price for 13610 yuan/ton, total profit 72500 yuan, increasing cost of buying stock deduct $15,400, and finally achieve earnings 57100 yuan.
Due to the 2005 showed 2009 after planting area have reported listed in cotton production narrow expectations of a large textile enterprises in hebei province, MianJia about future will rise sharply, in consultation with the futures companies, decide by futures hedging to hedge MianJia to bring up the pressure. The enterprise in October 2009 22 open hand cotton futures contracts bought 100, clinch a deal the price for 15030 yuan/ton. As the company expected recovery and downstream industry demand, cotton prices rise. Until March 5th, the cotton price level 328 for 15,200 yuan/ton, rising 1327 yuan/ton. Now, the company received a large order, decided to buy stock in production. For the enterprise receivables, sell its hands full 100 cotton futures contract, price for 16755 yuan/ton. On the same day, the enterprise in the stock market of 500 tons of cotton increased 663500 yuan cost, but the enterprise in the futures market totaling $862500 earnings. Overall, the enterprises in the spot when buy, not only did not pay, but also make the 199000 yuan.
From the above two examples that enterprises to participate in the futures hedging, not only can evade the risks of rising prices of raw materials, but also can lock profits. In the prices of raw materials, huge when the efficacy of hedging futures will reflect incisively and vividly, and occupy the market of hedging enterprise good timing. When others not participate in the enterprise value from the spot price fluctuations in torment, the enterprise may use its value to exploit market, the cost advantage is rapid development.
Secondly, to establish an effective internal control system, standardize trade activities, prevent risks. For the company system restriction in futures hedging problem, we think either state-owned enterprises, private enterprises or share-holding system in accordance with the following modes can establish an effective internal control mechanisms to prevent the illegal business operations and risk, without approval, such as layer can greatly improve the working efficiency, and effectively preventing the risk.
2009, institute of mid to help a well-established textile enterprise designed a set of perfect internal control mode, and get the praise of the whole, until now the process system is still in good condition, to bring good hedging benefits. This mechanism mainly consists of three parts: receptionist (futures department), background (department) and raise (risk monitoring department).
Receptionist is mainly responsible for the transaction, though periodically to raise and backend trading strategy and facilities case report, but there are trading decisions and implement the right timing, not delay trading. As the background, the financial department only accept money transfers man instructions futures margin transfer, accounting treatment, responsible for reviewing and trade bureau, confirm, and various financial entrusted business transactions and tracking, At the same time, according to the provisions of the regulatory front and back, and trade settlement at any time to assist in front of the trading personnel making profit-and-loss report, assessment of the risks of transactions. Our most important is the system of a ring, plays a role in front, risk monitoring and all the business operation background.
Once found potential risk to the related personnel, timely, and checked to futures business leadership team reports. In this system, the three departments closely linked, mutual cooperation, mutual restrict, not only can seize opportunities, but also to the best of risk control and supervision also played a positive role.
Again, the combination of strategy, hedging. TaoBao funds needed for enterprises to participate in the solution, actually not complicated. If unable to raise enough money to realize the spot, enterprises can TaoBao completely according to the change of raw material prices, take part hedging strategy. For example, a textile enterprises need to buy cotton in November, its stock 500 tons can completely according to their cash flow, 500 tons of cotton in its part.
Although this method can fully realize risk hedging, but can be reduced to a certain extent in the spot price fluctuation of risk to enterprises. Meanwhile, the enterprise can still time to hedge. When the enterprise cash flow is abundant, at a time when the stock price fluctuation, the enterprise can greatly value futures.
Note that, when the spot price is more stable, enterprises need to hedging. Thus, with its strategy, components, textile enterprises not only solved the problem of the hedging funds, and its price fluctuation of the raw materials needed for a certain degree of risk aversion. Of course, with China's economic development and the deepening of the reform of the financial market will gradually become more stable, open, and that in the near future, the enterprise can use the bank loans for hedging.
Theory of"
At present the intricacies of the economic situation, textile enterprise, if want to in the increasingly fierce competition in the industry development, should maintain stable long-term development business strategy formulation and initiative, favoured. First, to accelerate the pace of transformation of enterprises, and gradually achieve high efficiency, high quality, innovation and brand internationalization development target.
Secondly, the establishment of a more perfect the risk management system, use futures market for the hedging cost saving raw materials procurement and lock product profit. In short, only when the real ability against the risk of ascension, textile production management to more stability and sustainable, continuously is bigger and stronger, in an invincible position in the industry.
"Chinese textile net source."
Editor: lu be be
time:2010/7/8
count:0