RMB Exchange Rate Plummeted, Textile And Garment Benefits Rise

After last Friday's fall, the RMB exchange rate dropped sharply against the US dollar yesterday, and fell nearly 2% on that day.

UBS believes that the medium-term depreciation of the renminbi is unlikely to happen, but the agency is also worried that the recent RMB exchange rate fluctuations will change the long-time expectations of RMB investors' unilateral appreciation.

However, the short term continuation of the RMB exchange rate weakness will also bring volatility to the A share market.

Textile and clothing are most benefited.

In recent years, the RMB has continued to appreciate, and many domestic export oriented enterprises are under heavy pressure.

In turn, the depreciation of the renminbi will naturally give these enterprises a chance to breathe.

In these export oriented enterprises,

Enterprises undoubtedly occupy a large proportion.

For many textile and garment enterprises that are devoured by foreign exchange links, the depreciation of the renminbi will be one of the most direct means to stimulate their growth.

Yesterday, A shares of the textile and garment sector, which was stimulated by the short-term devaluation of the RMB, was agitated. Nearly 90 stocks rose in the sector.

At the close, YOUNGOR, Pathfinder, leading shares, Shenda shares, meltier and other stock trading companies, Huafu color spinning, Jiaxin silk, Jihua Group, Jia Linjie and so on rose more than 3%, the overall growth rate of the plate reached 3.96%, is one of the strongest trends in the two cities yesterday.

According to the data of flush capital flows, the net inflow of textile and clothing sector yesterday was 1 billion 298 million yuan, second only to three sectors, such as computer application, real estate development and electrical equipment.

From the specific point of view, institutional funds for textile and clothing plate targets are also favored, such as Pathfinder and wedding bird.

On the same day, the public information of the paction showed that the Pathfinder got the support of the four major institutions, and the total amount of purchase was 97 million yuan, accounting for 13% of the total turnover.

There were also two institutional seats to buy goods, and the purchase amount was 89 million yuan and 36 million yuan respectively, accounting for 34% of the total turnover of the stock.

Analysts believe that although the current external market downturn, the RMB short-term depreciation may not soon bring obvious incremental orders for textile and garment companies, but the export costs of related enterprises will still be significantly released, which is still good for the textile and garment sector.

In addition,

Similarly, because the household appliances enterprises mostly use the US dollar settlement in the product sales settlement, the depreciation of the RMB also increases the exchange earnings of the related enterprises relatively clearly. Investors can pay close attention to the beneficiaries GREE electric, Mei Group and TCL group.