Exchange Losses Caused By The Continued Depreciation Of The Renminbi, The Profits Of Many Large Enterprises Are Under Pressure.

Data show that since the beginning of this year, the RMB has depreciated more than 1% against the US dollar. In April 30th, the renminbi reached a minimum of 6.2676 in two years.

Insiders pointed out that the impact of RMB exchange rate fluctuations on domestic airlines is particularly obvious.

On the one hand, most of its revenues come from the domestic market, but on the other hand, most of the debts of fuel and aircraft purchases are priced in US dollars.

Since 2005, the renminbi has entered the appreciation channel against the US dollar. Baosteel has gradually replaced RMB financing with us dollar financing with relatively low interest rate and controllable exchange rate risk.

The company's current interest liabilities are below RMB 55 billion yuan, of which the US dollar debt ratio has exceeded 70%.

Real estate companies have also suffered a great deal of pressure because of the depreciation of the renminbi.

It is understood that due to the mainland property market cooling, industry risk exposure, developers increasingly difficult to obtain funds through traditional financing channels, overseas capital market has become the choice of more and more developers.

Wu Xiaoxuan, CEO of Greater China in Yunnan nuclear variable Financial Education Consulting Co., Ltd., in an interview with the China enterprise daily, said that because some enterprises, especially airlines, had large amounts of US dollar debt, the appreciation of the renminbi meant that they had less and less money, and the exchange losses would be caused by the acceleration of the internationalization process of the people's currency, the devaluation of the exchange rate and the two-way fluctuation.

Reporters learned in the interview that exchange loss is an industry phenomenon, but there are also special cases.

Some companies that have responded swiftly to exchange rate fluctuations are not only suffering from exchange losses but rather profitable.

According to media reports, the US group's foreign exchange earnings in the first half of the year amounted to 223 million yuan because of the establishment of a wind control department specializing in foreign exchange hedging.

Wu Xiaoxuan believed that

The dilemma is the two-way fluctuation of RMB. Enterprises should strengthen the construction of the wind control department and learn from the industry.

The main reason is that many enterprises fail to realize the importance of building wind control departments.

Another industry pointed out that in addition to

Besides the operation, the State Administration of foreign exchange and the central bank should consider how to develop and improve China's foreign exchange and financial derivatives market from a global perspective.

It is understood that before 2009, China's airlines can participate in the futures hedging pactions of aviation oil to hedge against the adverse effects of devaluation.

However, since the Singapore Airlines Company participated in hedging pactions in 2009 and caused huge losses, regulators began to strictly control airlines' participation in similar pactions.

Industry experts believe that China, the world's largest trading entity and the world's second largest economy, should be in line with the world's largest daily trading market and financial derivatives market.

Another industry believes that

Devaluation of exchange rate losses, enterprises should do everything possible to deal with.

Chen Zhanyun, vice president of Shanghai Investment Association, believes that enterprises should first predict what the RMB exchange rate will be in the next six months. If we continue to depreciate, we can take some financial instruments, such as options and so on, so that when the RMB depreciates, we can take corresponding measures. Secondly, we should adjust our structure, such as pferring some less profitable businesses to China. Finally, we should do a good job in strategic research, consider recent goals, phased goals and future long-term goals, and try to improve the competitiveness of enterprises.