Since 2018, the exchange rate of the RMB against the US dollar has been suppressed first. After the acceleration of 4% from mid-January to mid-February, it has embarked on a depreciating road. In the past two months, it has accelerated its decline. On August 15, it fell to 6.9350. , the lowest level since May 2017, the cumulative decline since June is 7.56%.
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Generally speaking, when the renminbi appreciates, industries that rely on imports such as chemicals and energy, as well as real estate and air transportation, which have more foreign currency liabilities, will benefit from it; when depreciating, semiconductors, communication equipment, textile manufacturing, white goods, rubber, etc. product export-oriented enterprises are easy to obtain exchange income.
"The impact of exchange rate on enterprises is embodied in three aspects: first, the trade level, which mainly affects the purchase cost, sales revenue, etc.; second, the capital level, mainly including cross-border mergers and acquisitions, equity investment income, etc.; The debt management level mainly affects the issuance cost of foreign currency bonds.” Li Weijie, senior manager of foreign exchange operations of Zijin Mining Group Finance Co., Ltd., told China Securities Journal.
Zhang Ge, head of CITIC Futures Financial Futures Research, told the China Securities Journal: "In general, the volatility of the RMB exchange rate has increased the exchange rate risk for trade companies and has an impact on the overall economic effects of the company. For example, During the RMB depreciation phase, companies with import trade demand or need to pay US dollars will face large exchange losses ."
In terms of the recent depreciation of the Renminbi, Li Weijie said: "This is conducive to the export of trade-oriented enterprises, but it also increases the cost of imported raw materials. For enterprises, the most intuitive feeling is the increase in the cost of imported raw materials. As for the promotion of export depreciation, It may take some time for it to be reflected. In addition to daily trade, the depreciation of the renminbi has also increased the cost of repaying foreign debts. If the company does not adequately hedge the foreign currency debts that need to be repaid in the early stage, the debt service cost of the enterprise will Increase by at least 10%."
The exchange rate volatility has increased, and it has also attracted a number of A-share listed companies to announce that they will carry out foreign exchange hedging. Among them, Jiawo shares announced on August 4 that the company and its subsidiaries intend to use the bank hedging instruments to roll over the equivalent of 50 million US dollars, and carry out foreign exchange hedging business with relevant financial institutions. Ningde era announced on August 9 that it intends to carry out foreign exchange hedging business with financial institutions, the scale does not exceed 5.6 billion yuan or equivalent foreign currency amount.
China Nuclear Titanium announced on August 15 that the company intends to carry out foreign exchange hedging business with a cumulative amount of not more than 750 million yuan and a maximum of not more than 150 million yuan or equivalent foreign currency. The authorization period is from the date of review and approval by the company's board of directors. Valid within the month, within the scope of the company, the company can be recycled.
Vanke A announced on August 16 that it will authorize subsidiaries to carry out foreign exchange hedging transactions. According to the announcement, the main foreign exchange hedging proposed by Vanke Overseas platform includes but is not limited to: forward settlement/purchase (such as forward foreign exchange contract DF or NDF), currency swap (such as cross currency swap contract CCS), foreign exchange For options, etc., the term of the foreign exchange hedging item purchased is as close as possible to the company's foreign exchange risk exposure period and cannot exceed the foreign exchange risk exposure period.
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Not only that, according to incomplete statistics, this year, more than 200 listed companies in A-shares have issued announcements on the development/addition of foreign exchange hedging, forwards and derivatives.
The article was transferred from: http://www.xinhuanet.com/money/2018-08/20/c_1123294358.htm